Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the cost of living on the numbers of (a) businesses at risk of insolvency and (b) people in debt in Aldershot constituency; and what fiscal steps she is taking to support those (i) businesses and (ii) people.

The Government recognises the significant impact the cost of living has had on personal finances, and particularly for those struggling with debt. We regularly engage with the Bank of England, the Financial Conduct Authority (FCA) and the Money and Pensions Service (MaPS) to monitor personal finances and debt levels. The Money and Pensions Service conducts an annual survey of people in financial difficulty. The results of their latest survey were published on 29 February 2024.

Given cost-of-living pressures, the Government remains committed to helping people that are in problem debt and vulnerable circumstances. For this reason, the Government offers a variety of debt advice services through the Money and Pensions Service to support individuals facing debt issues in England, including both national and community-based debt advice provision.

The Government has also put in place several measures to support the households who face the greatest hardships, including the Fair Repayment Rate for debt deductions in Universal Credit, which means approximately 1.2 million families will keep more of their award each month. The Household Support Fund has also been extended to 2025-26, which will help households facing financial crisis by supporting them with the cost of essentials such as food, energy and water.

We’ve also increased the National Living Wage to £12.21 per hour, an increase of 6.7% which is worth up to £1,4000 for a full-time worker.

With respect to business debt, this is principally a commercial matter. However, the Government is strongly supportive of the work of the British Business Bank as a critical tool to help ensure finance reaches those parts of the economy that otherwise may struggle to obtain the capital they need.

This is why at Autumn Budget, to help support the Government’s mission to kickstart economic growth, the Department for Business and Trade’s (DBT) settlement will allow them to invest over £1 billion across 2024–25 and 2025–26 for the BBB to enhance access to finance for small businesses, including over £250 million each year for small business loans programmes, including Start Up Loans and the Growth Guarantee Scheme.