Debt Advice Services

Lord Bishop of Southwark Excerpts

Thursday 6th September 2018 Lords Chamber

[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.