Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what discussions she has had with (a) UK Finance, (b) individual lenders, (c) credit reference agencies and (d) other relevant organisations to ensure that (i) credit reference agencies and (ii) lenders differentiate between individuals who (A) responsibly manage their debts through (1) payment plans or (2) debt management plans and (B) those who are subject to (a) court or (b) bankruptcy proceedings.

The Government recognises that credit, when provided responsibly, can be crucial for people facing unexpected expenses or managing their cash flow. That is why it is committed to expanding access to affordable credit, so that everyone has the opportunity to access products and services which support their financial wellbeing and goals.

In December 2023, the FCA published the final report for the Credit Information Market Study, proposing twelve remedies to improve the market. This included a mandatory data sharing proposal to improve the availability of accurate, consistent and comprehensive credit information,

which is intended to support the responsible provision of credit services, and a proposal to streamline the processes regarding vulnerability markers. The FCA and industry are jointly establishing a new Credit Reporting Governance Body, which will be responsible for overseeing the sharing of credit information and implementing these recommendations.

More broadly, HM Treasury regularly engages with the consumer credit sector to discuss a range of policy matters, including provision of affordable credit, which also forms a key part of the financial inclusion strategy work announced last year.