Cross-party effort pushes Tories on 'breathing space' for debt-ridden families
2 min read
A cross-party group of peers is challenging the Government to fulfil a manifesto promise to give struggling families “breathing space” to deal with their debts.
At June’s general election the Tories promised to bring in a six-week grace period where individuals would have “legal protection from interest, charges and enforcement action”.
Tory, Lib Dem and Labour peers have lined up behind an Shadow Business minister Lord Stevenson's amendment to the Financial Guidance and Claims Bill, calling for ministers to bring in a “debt respite scheme”.
Among those backing the change is the former Conservative pensions minister, Lady Altmann.
The legislation brings three financial advisory bodies – the Money Advice Service, Pensions Advisory Service and Pension Wise – into one new Single Financial Guidance Body, which itself will be overseen by the Financial Conduct Authority.
The bill started its journey to the statute book in the Lords, where it will go through its report stage today and next Tuesday.
Speaking ahead of today’s session, Lord Stevenson told PoliticsHome: “Everyone knows that personal debts are rising, and the number of people facing unmanageable credit card, utility and store card bills is back to pre-financial crisis levels.
“We have to do something about problem debt in the UK, and protect children living in households that have difficulty putting food on the table, while trying to pay off bills, loans and interest charges.
“That’s why it’s surprising that the Conservatives, having – like Labour – committed to a ‘breathing space’ scheme in their election manifesto, are now dithering on its introduction, even though they have a ready-made vehicle for doing so, in the Financial Guidance and Claims Bill currently going through Parliament.”
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