To ask His Majesty's Government what steps they are taking to support consumers facing financial difficulty due to high credit card interest rates and increasing levels of debt.
Answered on
12 March 2024
The Government is committed to helping people in problem debt. This is why the Government continues to maintain record levels of debt advice funding for the provision of debt advice in England through the Money and Pensions Service (MaPS), with a budget of £92.7 million for 2023-24. Government also launched the Breathing Space scheme in May 2021, providing individuals in problem debt who seek debt advice, with a period of protection from creditor enforcement action.
At Spring Budget 2024, the Chancellor announced changes to make it easier to access a Debt Relief Order (DRO) in England and Wales. This included removing the administration fee and widening the eligibility criteria.
The Government also aims to ensure that people, regardless of their background or income, have access to useful and affordable financial products and services. Since 2019, the Government has allocated £145 million of dormant assets funding to Fair4All Finance to support the financially excluded.