Consumer and Personal Debt
Baroness O'Cathain Excerpts(7 years ago)
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Lord Bates
The Financial Conduct Authority placed a duty on banks to make sure that lending is on a sustainable basis. In the wider area, it is also important that we maintain the strong and vibrant economy that has record numbers of people in work and record low levels of unemployment. Those things are the greatest help to people’s ability to service debt and are therefore the primary focus of our attention.
Baroness O'Cathain (Con)
My Lords, this is all about the horrible situation that people get into because of debt. It is wonderful that the Government are trying to do something to reduce it and to make people more aware of it, but what incentive will they give to people to save? The incentives to have debt are being addressed but there is no incentive at all to save.
Lord Bates
The report referred to earlier contained the staggering statement that more than 40% of Britons have less than £100 in savings as a buffer before they get into debt. That is one reason why my noble friend will be pleased to know that we have established the Help to Save scheme. It will help 3.5 million people save £50 per month over two years. If they do that, the Government will give a 50% grant, which represents a very substantial rate of return to encourage saving.
Financial Services: Regulation
Baroness O'Cathain Excerpts(7 years, 2 months ago)
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Baroness O'Cathain (Con)
My Lords, does my noble friend agree that one way to reduce regulation would be to review the excessive checks being made on politically exposed people in the UK, including me?
Lord Bates
I suppose we can all declare an interest in that. My noble friend may be encouraged to hear that as a result of the money laundering regulations that were laid before the House in June 2017, the FCA has issued guidance on politically exposed persons to ensure that they are dealt with on a case-by-case basis and in a proportionate way, and that organisations focus on those individuals who would be at highest risk and recognise those who are at lowest risk, which I am sure would include all Members of your Lordships’ House.