Economy Update

Stella Creasy Excerpts

Thursday 26th May 2022 Commons Chamber

[Stella Creasy (Walthamstow) (Lab/Co-op)]

The Chancellor says he cannot solve every problem, but there is one problem he could solve that would not cost him a penny, but would save millions of people billions of pounds. One in 10 households say it is loan repayments that are causing them destitution, with an average monthly repayment to find of around £370. In the cost of living crisis, it is the legal loan sharks and consumer credit companies that have profited from the delay in help that we have seen and the lack of regulation of their charges. This is not just “buy now, pay later”—it is all of them. When will the Chancellor follow the lead of other countries, recognise how our constituents are being ripped off by those companies, and introduce a cap on the costs of all credit?

[Rishi Sunak]

My hon. Friend the Economic Secretary to the Treasury is in regular dialogue with the Financial Conduct Authority to ensure that the industry is properly regulated. Last year, we also introduced the breathing space programme, for which he deserves enormous praise and which we continue to believe will help people. It provides a space where all statutory debt repayments are paused to allow families time to work through them, with the benefits that that brings.