High Cost Credit Bill
Debate between Jo Swinson and Gareth Thomas
The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Jo Swinson)
I very much thank the hon. Member for Sheffield Central (Paul Blomfield) for introducing his Bill and giving the House the opportunity to discuss this matter. We have heard some excellent speeches from hon. Members on both sides of the House, and it is clear that this important issue affects people in every one of our constituencies. Although it is true that some people can take out a payday loan and have no problem with it, finding it a useful product, it is also true that many others have a very different experience indeed. We have heard some of the case studies; we heard about the experiences of individuals and the misery they have found themselves in as a result of a spiral of debt, much of which is not always helped by the payday loans and the behaviour of those in the industry.
Jo Swinson
I can certainly let the hon. Gentleman know that my intention is to make a speech of a reasonable length, and I am happy to take interventions and ensure that the House has the opportunity to question the Minister on these issues. I have to say that Friday is not my favourite day to be in the House because of some of the behaviour that is often on display.
I shall certainly address the points raised by the hon. Member for Sheffield Central. I appreciate the work that he has—
Proceedings interrupted (Standing Order No. 11(4)).
High Cost Credit Bill
Debate between Jo Swinson and Gareth Thomas
Jo Swinson
It is delightful to be able to return to the issue of high-cost credit and payday lending after that short interlude for the urgent question on tobacco packaging.
Before we were interrupted, I was saying that I really appreciate the particularly constructive way in which the hon. Member for Sheffield Central has brought forward this Bill, working with not only the wide range of campaigners outside this House but MPs across the House, including me. I am delighted to accept his request to have further meetings with him and campaign groups to continue to discuss the issue and how we solve the problems that he raises. I would also be happy to extend an invitation for him to meet the chief executive of the Financial Conduct Authority, which will obviously play a crucial role in the industry as it moves to become the regulator. I am sure that the hon. Gentleman would find that useful, as would the FCA.
It is important to say from the outset that the hon. Gentleman is spot on about the problems in the industry and I agree with him on roll-overs and affordability assessments. We know from the evidence that my Department has commissioned, the Bristol report and ongoing Citizens Advice surveys that all those issues are causing difficulty. I think there is a huge amount of agreement on the issues we are trying to tackle, but we disagree slightly on the solutions and on whether legislation is necessary at this point or whether the Government’s tough action, which was announced in March and has been taken up by the FCA since April, is a better way of tackling the problems. I believe the latter to be the case and the hon. Gentleman disagrees, but it is important to recognise that there is a huge amount of agreement on what the problems are and that they need to be tackled.
Jo Swinson
I will confirm that we do not believe that this Bill is the best way to tackle the significant problems in the industry. Obviously, it is up to the House to decide, as is always the case with such matters, whether the Bill should go into Committee, but I and my Government colleagues will not support it if it goes to a vote.