Asked by: Irene Campbell (Labour - North Ayrshire and Arran)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she will take to ensure banks provide access to affordable credit to people who are financially excluded.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Government recognises that, when provided responsibly, credit can play an important role in helping people manage unexpected expenses and smooth their cash flow. Access to suitable, affordable credit products can support people’s financial resilience and help them achieve their financial goals.
For this reason, the Government is committed to improving access to affordable credit. HM Treasury regularly engages with lenders on a range of policy matters, including how the provision of affordable credit can be strengthened.
The Government’s recently published Financial Inclusion Strategy sets out an ambitious package of measures to improve access to affordable credit. This includes support for the community finance sector and a pilot of a small-sum lending scheme, run by Fair4All Finance, which will test the offer of small value loans from a mainstream lender.
Asked by: Irene Campbell (Labour - North Ayrshire and Arran)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Financial Inclusion Strategy, published on 5 November, whether the Government plans to develop targets as well as metrics to monitor progress in delivering the Strategy’s objectives on improving access to affordable credit.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
Earlier this month, I published the Government’s Financial Inclusion Strategy setting out an ambitious programme of measures to improve financial inclusion and resilience for underserved groups across the UK. The Strategy was developed alongside a committee of industry and consumer representatives and seeks to tackle a range of barriers individuals face in accessing financial products, including a key focus on improving access to credit.
As part of developing the strategy, the Government has engaged with Financial Inclusion Committee members and other organisations on how to measure its impact. The Strategy’s implementation will be reviewed in two years’ time to provide an update on interventions and relevant outcomes-based metrics, which will reflect on the progress made across the sector.
The Government will continue to work closely with the sector as we implement the strategy, including continuing to engage with firms on interventions to strengthen the provision of affordable credit.
Asked by: Irene Campbell (Labour - North Ayrshire and Arran)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent progress her Department has made in reviewing responses to the call for evidence on reforming the credit union common bond in Great Britain; and when her Department plans to publish its proposed next steps.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The government recognises the role that credit unions play in providing savings and affordable loans to their members, serving local communities throughout the country. This is why the government is taking steps to ensure credit unions are fully supported to grow and scale into the future.
This includes exploring legislative reform to the credit union common bond, to ensure it remains fit for purpose. We launched a call for evidence at last year’s Mansion House on the potential reform, which closed in March this year.
Responses to the call for evidence are being carefully considered and the government will provide an update on this work in due course.
Asked by: Irene Campbell (Labour - North Ayrshire and Arran)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what fiscal steps she is taking to reform the pensions system.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
The Pensions Investment Review, which I am leading, aims to drive the scale and consolidation of Defined Contribution pension schemes and the Local Government Pension Scheme. Our reforms could unlock £80 billion of productive investment into new infrastructure and businesses of all sizes.