Question to the HM Treasury:

To ask Her Majesty's Government what plans they have to introduce legislation to make debt restructuring binding for all private creditors on loans provided for under legislation for England and Wales.

The Government currently has no plans to introduce legislation to make debt restructuring binding for private creditors on loans.

To support people in problem debt, the Government has agreed to maintain record levels of funding for free-to-consumer debt advice in England in 2021-22. In addition to this, the Breathing Space scheme launched in England and Wales last year, offering people in problem debt a pause of up to 60 days on most enforcement action, interest, fees and charges, and encouraging them to seek professional debt advice.

The Government continues to develop the Statutory Debt Repayment Plan (SDRP), a statutory agreement that will enable a person in problem debt to combine their debts into a single repayment that they make over a manageable time period, while receiving legal protections from creditor action for the duration of their plan. The Government is aiming to launch a public consultation on draft SDRP regulations as soon as possible this year and has committed to aim to lay regulations by the end of this year and launch the scheme in 2024.