To ask the Chancellor of the Exchequer, whether he plans to take steps to participate in the implementation of no interest loan schemes.
11 July 2022
The Government has provided £3.8 million to Fair4All Finance to pilot a No-Interest Loans Scheme. The scheme will enable consumers in vulnerable circumstances to access affordable rather than high-cost credit to meet unexpected costs.
Good progress is being made and, starting in January 2022, dozens of loans have now been issued at the proof-of-concept site in South Manchester. Loans issued to date are already providing tangible real-life impacts for recipients. For example, credit has been provided to cover costs of new white goods to keep a family running, to pay for funerals for loved ones, and to support consolidation personal debts so that they are more manageable.
Fair4All Finance are now finalising contracts with the lenders chosen to take part in the wider pilot and we expect that loans will start being issued more widely by September.