Debt Advice Services
Debate between Lord Bishop of Southwark and Lord Bates(6 years, 2 months ago)
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Lord Bates
I am sorry but I do not accept that; the evidence does not point to it. Over 3 million more people are in work in this country. We have seen one of the largest increases for the lowest-paid in this country through the introduction of the national living wage. As a result of basic tax thresholds being raised, the typical taxpayer in full-time work is £1,000 better off. That is not to diminish in any sense the fact that there is a serious problem with personal debt in this country. It is about 16.5% less than its pre-crisis levels when inflation is taken into account. That is why we are taking the steps that we are.
The Lord Bishop of Southwark
My Lords, with the demise of Wonga, which I hope the Minister will want to join me in welcoming, does he wish to take this opportunity to endorse the work of the many credit unions which are a channel for such sound advice?
Lord Bates
We have provided significant additional funding to the credit unions. Wonga, which is in administration at present, is not a matter directly for government. The Financial Conduct Authority has issued advice that those who have loans with Wonga should continue to service those debts to avoid getting into further potential debt in the future.
Financial Services: Regulation
Debate between Lord Bishop of Southwark and Lord Bates(7 years, 2 months ago)
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Lord Bates
Those major banks, of course, are covered by the Prudential Regulation Authority, through the Bank, but the FCA has a prudential role as well as its regulatory role. As I mentioned, it is important that we recognise that where regulations apply it is done in a proportionate and appropriate way for consumers and also for the businesses that are being dealt with.
The Lord Bishop of Southwark
My Lords, when do Her Majesty’s Government intend to implement in full the principal recommendations of the Parliamentary Commission on Banking Standards, published in June 2013?
Lord Bates
I do not have an answer for that, but I am very happy to write to the right reverend Prelate.