Oral Answers to Questions

Debate between Baroness Chapman of Darlington and Yvonne Fovargue

Monday 12th November 2012 Commons Chamber

[Jenny Chapman (Darlington) (Lab)]

11. When he expects to announce the allocation of the transitional council tax grant to local authorities.

[Yvonne Fovargue (Makerfield) (Lab)]

17. When he expects to announce the allocation of the transitional council tax grant to local authorities.

Independent Debt Advice

Debate between Baroness Chapman of Darlington and Yvonne Fovargue

Tuesday 8th February 2011 Westminster Hall

[Yvonne Fovargue]

I thank my hon. Friend for that intervention. I completely agree. I will come to the issue of where people are likely to go in the future.

[Mrs Jenny Chapman (Darlington) (Lab)]

I am very grateful to my hon. Friend for giving way and I too congratulate her on securing this debate. On the issue of where people will go for their debt advice, I suspect that they will have somewhere to go, which will be into the arms of fee-charging providers who advertise their services and, according to the Office of Fair Trading, mercilessly use every opportunity to recruit people inappropriately to use their services.

[Yvonne Fovargue]

I thank my hon. Friend for that intervention; I will come to the issue of fee-paying debt management companies shortly.

As I was saying, I have a second question for the Minister. Does he expect financial education to eradicate the need for debt advice in the future? It is my experience that most people fall into debt due to unplanned events, for example bereavement, illness or the loss of a job. People do not plan to get into debt, and borrowing is only debt when people cannot afford to pay the money back. At such stressful times in people’s lives as dealing with a bereavement or an illness, timely advice is vital. Indeed, one of the most distressing cases that I have dealt with personally was that of a family who had a child with a severe disability. They received all the disability and carers’ benefits, and they had taken out loans to adapt their home and car to enable their daughter to be cared for at home rather than in residential care. However, she died suddenly and unexpectedly, and they were left on vastly reduced benefits and facing a high level of debt.

Where are those people to go in the future? Like my hon. Friend, I fear that they will be thrust into the clutches of the fee-charging debt management companies, the same companies that the OFT found flouted debt management guidelines by misrepresenting their services as free when they are not free. The OFT also reported that many front-line advisers working for those companies lacked competence and provided poor advice based on inadequate information. Unfortunately, urgent action was not taken to address the problem and the issue is now being considered as part of the consumer credit and personal insolvency review. Unless action on the regulation of debt management schemes is fast-tracked, it is very unlikely that the necessary protections will be in place until autumn 2011 at the earliest, if they are put in place at all.

Vulnerable people should not be put into the position of paying unregulated and often incompetent providers to deal with the fact that they do not have enough money to pay their bills. The situation is becoming more urgent daily, with more and more advice agencies closing their door to new debt clients, so I urge the Minister to consider extending the financial inclusion fund programme until the review of advice services is complete, or to provide sufficient alternative funding for free face-to-face debt advice to continue in local agencies. Not to do either of those things will have a great cost—both in human terms and for the state.

Higher Education Fees

Debate between Baroness Chapman of Darlington and Yvonne Fovargue

Thursday 9th December 2010 Commons Chamber

[Mrs Jenny Chapman (Darlington) (Lab)]

I have given the progressive nature, or otherwise, of the proposals a great deal of thought throughout the debate, and I have managed to find one way in which they are progressive. It is that they will enable some hard-pressed Labour candidates to progress into Liberal Democrat seats at the next election.

[Yvonne Fovargue]

I thank my hon. Friend for that intervention.

Encouraging young people in Makerfield to consider university, and to consider which university course is right for them, has been difficult enough without bringing in the added complication of the huge rise in costs due to the trebling, in some cases, of tuition fees. Not only will potential students from poorer backgrounds be deterred from further education completely, but those who are determined to proceed will feel pressure to choose the most affordable course, even though it may not be the right one for them.

The average student debt will rise massively to £40,000, according to the University and College Union. In Makerfield, that equates to just over half the cost of the average terraced house, the kind of property in which many of my constituents live. The idea of taking on that amount of debt at a young age, and also having to plan for a future later, is unimaginable and frightening to many people.