Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps his Department is taking to ensure that (a) pensioner and (b) other people who apply for credit without a comprehensive credit rating have fair access to finance.

The Government believes that a consumer without a comprehensive credit rating should have fair access to credit.

To support those struggling to access credit, in 2018, the Government announced the winners of its £2 million Rent Recognition Challenge. The winners offer apps for renters to record and share their rent payment data, helping boost their credit score. Further, since 2019, the Government has provided £96 million to Fair4All Finance to increase the financial resilience and wellbeing of people in vulnerable circumstances through improving availability of fair and accessible financial products and services.

For consumers struggling to access credit, Credit Reference Agencies can advise consumers to add a Notice of Correction (of up to 200 words) to their credit report explaining any special circumstances, and to explain how their situation has now changed or improved. The content of the Notice should be taken into account alongside the information on the consumer’s report.

To support pensioners, those in receipt of Pension Credit may be able to apply for Budgeting Loans available through DWP’s Social Fund. These are interest-free loans, which are repayable from benefit awards and are designed to help with intermittent expenses that are considered difficult to budget. Those in receipt of Universal Credit can access new claim advances at the beginning of their claim should they have upfront costs. There are also budgeting or change of circumstances advances, available throughout a Universal Credit claim, should someone encounter unexpected one-off expenses.