Consumer and Personal Debt

Lord Kinnock Excerpts

Monday 23rd October 2017 Lords Chamber

[Lord Bates]

The report referred to earlier contained the staggering statement that more than 40% of Britons have less than £100 in savings as a buffer before they get into debt. That is one reason why my noble friend will be pleased to know that we have established the Help to Save scheme. It will help 3.5 million people save £50 per month over two years. If they do that, the Government will give a 50% grant, which represents a very substantial rate of return to encourage saving.

[Lord Kinnock (Lab)]

My Lords, does the Minister recognise that in our debt-dependent economy, average household debt is 150% of average household income? Unsecured personal debt is now back above £200 billion. Council tax and utility bills are at record levels of default and 40% of mortgage borrowers in our country have no experience of dealing with an interest rate rise. In those perilous circumstances will the Minister join others in strongly urging the Bank of England not to increase interest rates, which would devastate families, businesses and the economy and do nothing to diminish inflation, which is in any case largely the result of the post-referendum devaluation of the pound?