Question to the HM Treasury:

To ask His Majesty's Government, following reports of the shrinkage of the non-prime lending market, what steps they are taking to ensure that vulnerable customers have access to fair and regulated credit products.

The government is committed to taking steps to widen access to affordable credit, and is overseeing a number of initiatives to support this goal.

Since 2019, the government has made £100 million of dormant assets funding available to Fair4All Finance to support their work on financial inclusion, and an additional £45 million for initiatives to tackle the elevated cost of living. The government has also provided Fair4AllFinance with £3.8m of funding to pilot a No-interest Loans Scheme, designed for consumers in vulnerable circumstances who would benefit from affordable rather than high-cost credit.

As part of the Financial Services and Markets Act 2023, the government has amended the Credit Unions Act 1979 so that credit unions in Great Britain can offer a wider range of products and services.