Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what specific plans he has to tackle the rise of debt for young people which take account of the relatively higher level of debt than in previous generations.

The number of under 25s holding a financial liability has fallen since 2010, from 26% to 22%. Despite this, the government is taking a proactive approach to ensure that young people with debt are supported.

To protect those who choose to take on debt, we fundamentally reformed consumer credit regulation in 2014, giving the Financial Conduct Authority robust regulatory powers to protect consumers. The government is also setting up a new Single Financial Guidance Body, which will provide consumers with a single point of contact for help with all financial matters, and commission high-quality, free to user debt advice.

However, we recognise that, despite these measures, some people can fall into problem debt. That is why the government-commissioned Money Advice Service is spending over £56m to provide debt advice to at least 530,000 people this year. The government is also introducing a six week breathing space alongside a statutory debt repayment plan. Together, they will provide over-indebted people with protection from creditor action so they can seek debt advice and enter into a sustainable debt solution.