Financial Guidance and Claims Bill [Lords]

Debate between Yvonne Fovargue and Esther McVey

2nd reading: House of Commons
Monday 22nd January 2018 Commons Chamber

[Ms McVey]

My hon. Friend makes a good point. Household debt rocketed under the previous Labour Government, and we are now ensuring that it comes down, because it is still too high. I particularly appreciate that the Bill has cross-party support, because we all know that we need to help people who are in debt.

As a result of a range of broader reforms and initiatives, such as automatic enrolment, which has increased the number of people saving into pension schemes and the pension freedoms that allow anyone aged 55 and over to take their whole pension as a lump sum without paying tax on the first 25%, the number of people looking for high-quality, impartial financial guidance continues to rise. We look forward to the new body meeting those challenges, building on the existing good work of the Money Advice Service, the Pensions Advisory Service and Pension Wise.

[Yvonne Fovargue (Makerfield) (Lab)]

Has the Minister considered whether the breathing space will apply to public as well as private sector debts, because many people find that they are pursued more vigorously by those creditors?

[Ms McVey]

While looking at this respite, we are having a call for evidence to determine how best to proceed, and no doubt the hon. Lady’s point will be raised.