Written question asked by Seema Malhotra (Labour) on Monday, 14 December 2015, in the House of Commons. It was due for an answer on Thursday, 17 December 2015 (named day). It was answered by Harriett Baldwin (Conservative) on Thursday, 17 December 2015 on behalf of the Treasury.

Debts

Question: To ask Mr Chancellor of the Exchequer, what steps he is taking to address the level of UK household debt.

Answer: Household debt as a proportion of income has fallen to 144 per cent in Q2 2015, from a peak of 168 per cent in Q1 2008. To avoid repeating the mistakes of the past we have created the independent Financial Policy Committee (FPC) within the Bank of England to ensure emerging risks and vulnerabilities across the financial system as a whole are identified, monitored and effectively addressed. The FPC recently re-affirmed its view that, given the actions it has taken, household indebtedness did not pose an imminent threat to financial stability.

Secondary information