Consumer and Personal Debt

Baroness Liddell of Coatdyke Excerpts

Monday 23rd October 2017 Lords Chamber

[Lord Haskel]

To ask Her Majesty’s Government what steps they are taking to deal with the concerns of the Money Advice Service and the Financial Conduct Authority about the level of consumer and personal debt in the United Kingdom.

[Baroness Liddell of Coatdyke (Lab)]

My Lords, with the permission of the House and at the request of my noble friend Lord Haskel, I beg leave to ask the Question standing in his name on the Order Paper.

[The Minister of State, Department for International Development (Lord Bates) (Con)]

My Lords, the independent Financial Policy Committee stated last month:

“The overall level of consumer debt relative to household incomes was in line with historical averages”.


We set up the Money Advice Service, which spent £49 million on debt advice last year, and are creating a single financial guidance body to ensure that people can manage their money better.

[Baroness Liddell of Coatdyke]

My Lords, I thank the Minister for his response, but just last week the director of the Financial Conduct Authority pointed out that domestic debt was rising by about 10% per annum. It is not irresponsible debt; it is debt on food and accommodation. The Monetary Policy Committee has also warned of these increases in personal debt. Behind these economic statistics lie great hardship, stress and concern for families. The Minister is known as a compassionate man. When the Financial Guidance and Claims Bill comes before this House tomorrow, will he impress on his colleagues the need to introduce the measure in his party’s manifesto which would give a breathing space to those with problem debt?

[Lord Bates]

Certainly it is correct that the Financial Guidance and Claims Bill will introduce a number of measures that will improve the service for debt advice to those in greatest need. We stand by our commitment on the breathing space, which was in our manifesto and the manifesto of the noble Baroness’s party. We will bring forward measures to deal with it, which underscores the importance we place on dealing with debt, particularly among young people.