Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent assessment he has made of the level of reliance on consumer credit borrowing for essential household purchases.

Overall, household finances are healthier than before the pandemic and compared to the Global Financial Crisis of 2008.

Households accumulated around £230 billion in additional savings between the start of 2020 and Q3 2021, while total consumer credit borrowing decreased by 11% in the two years to February 2022.

The Government is committed to delivering a well-functioning and sustainable consumer credit market which is able to meet the needs of all consumers.

The Government is also committed to supporting the affordable credit sector. At Budget 2021, the government announced up to £3.8m for a pilot No-Interest Loans Scheme to support vulnerable consumers who would benefit from affordable credit to meet unexpected costs as an alternative to relying on high-cost credit.