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Written question asked by Anna McMorrin (Labour) on Wednesday, 4 November 2020, in the House of Commons. It was due for an answer on Monday, 9 November 2020. It was answered by John Glen (Conservative) on Wednesday, 11 November 2020 on behalf of the Treasury.

Debt Rescheduling: Coronavirus

Question

To ask the Chancellor of the Exchequer, what assessment the Government has made of the level of use of debt management plans as a result of financial difficulties due to the covid-19 outbreak.

Answer

The Government continues to engage closely with the debt advice sector, the Money and Pensions Service, the Financial Conduct Authority and other stakeholders to monitor and understand the ongoing and future impact of COVID19 on people’s finances, including on the demand for debt advice and debt solutions, such as debt management plans.

The Government recognises that some people are struggling with their finances at this challenging time. To help people in problem debt get their finances back on track, an extra £37.8 million support package has been made available to debt advice providers this financial year, bringing this year’s budget for free debt advice in England to over £100 million.

From May 2021 the Breathing Space scheme will offer people in problem debt a pause of up to 60 days on most enforcement action, interest, fees and charges, and will encourage them to seek professional debt advice.

Secondary information

Type
Written question
Reference
111596
Session
2019-21
Subjects
Debt rescheduling Disease control Coronavirus
Link
View this Written question on www.parliament.uk