This briefing covers how the high period of inflation in the UK from 2021 to 2024 continues to affect household incomes, spending, poverty, savings and debt.

This briefing covers how the high period of inflation in the UK from 2021 to 2024 continues to affect household incomes, spending, poverty, savings and debt.

Find the latest data on house prices, mortgage approvals, and house building in the UK.

Find the latest data on house prices, mortgage approvals, and house building in the UK.

Debt levels affect how much households spend. Find the latest data on UK household debt, mortgage rates and insolvencies.

Debt levels affect how much households spend. Find the latest data on UK household debt, mortgage rates and insolvencies.

To ask the Secretary of State for Work and Pensions, what assessment his Department has made of the adequacy of support available to homeowners with children who are claiming Universal Credit, in the context of the difference between non‑repayable housing support for renters and loan‑based Support for Mortgage Interest for...

To ask the Secretary of State for Work and Pensions, what assessment his Department has made of the adequacy of support available to homeowners with children who are claiming Universal Credit, in the context of the difference between non‑repayable housing support for renters and loan‑based Support for Mortgage Interest for...

To ask the Secretary of State for Housing, Communities and Local Government, with reference to the Ministry of Housing, Communities and Local Government's press release entitled Homebuying shake-up to slash delays, cut costs and stop sales falling through, published on 19 June 2026, what discussions he has had with mortgage...

To ask the Secretary of State for Housing, Communities and Local Government, with reference to the Ministry of Housing, Communities and Local Government's press release entitled Homebuying shake-up to slash delays, cut costs and stop sales falling through, published on 19 June 2026, what discussions he has had with mortgage...

To ask the Chancellor of the Exchequer, whether the forbearance obligations on mortgage lenders under the Financial Conduct Authority's Mortgages and Home Finance: Conduct of Business sourcebook, in particular the duty to consider appropriate forbearance for borrowers in financial difficulty, apply independently of and continue beyond the six-month support options...

To ask the Chancellor of the Exchequer, whether the forbearance obligations on mortgage lenders under the Financial Conduct Authority's Mortgages and Home Finance: Conduct of Business sourcebook, in particular the duty to consider appropriate forbearance for borrowers in financial difficulty, apply independently of and continue beyond the six-month support options...

To ask the Secretary of State for Energy Security and Net Zero, what steps he is taking to help improve public awareness of the risks associated with spray foam insulation, including the circumstances in which it may affect mortgage lending or insurance.

To ask the Secretary of State for Energy Security and Net Zero, what steps he is taking to help improve public awareness of the risks associated with spray foam insulation, including the circumstances in which it may affect mortgage lending or insurance.

To ask the Secretary of State for Housing, Communities and Local Government, what steps his Department plans to take to implement the proposed home buying reforms; what estimate his Department has made of the potential costs of the reforms to (a) local authorities, (b) HM Land Registry, (c) conveyancers and...

To ask the Secretary of State for Housing, Communities and Local Government, what steps his Department plans to take to implement the proposed home buying reforms; what estimate his Department has made of the potential costs of the reforms to (a) local authorities, (b) HM Land Registry, (c) conveyancers and...

With the greatest respect, I think it might be both. We have to adapt and take long-term action to get down to net zero, as the right reverend Prelate says. I agree on both points.

With the greatest respect, I think it might be both. We have to adapt and take long-term action to get down to net zero, as the right reverend Prelate says. I agree on both points.

My Lords, once we reach three degrees of warming, no one can take on the risks, so there will be no more insurance and:

“The financial sector as we know it ceases to function”.

Those are the conclusions of Günther Thallinger of Allianz, who warns that Governments will be unable to backstop the resulting losses. Given this stark warning, what discussions have taken place with the Prudential Regulation Authority on the systemic financial stability risks of climate-driven insurance withdrawal?

My Lords, once we reach three degrees of warming, no one can take on the risks, so there will be no more insurance and:

“The financial sector as we know it ceases to function”.

Those are the conclusions of Günther Thallinger of Allianz, who warns that Governments will be unable to backstop the resulting losses. Given this stark warning, what discussions have taken place with the Prudential Regulation Authority on the systemic financial stability risks of climate-driven insurance withdrawal?

I am grateful to the noble Earl for his support for many of the Government’s measures in this area. As he knows, the Financial Policy Committee is responsible for identifying, monitoring and taking action to remove or reduce systemic risks with a view to protecting and enhancing the resilience of the UK financial system. The Government’s remit to the committee makes clear that it should continue to regard the risks arising from climate change as relevant to its primary objective. The Bank of England’s December 2025 financial stability report set out the committee’s assessment of climate-related risk to UK financial stability, which is that it is low relative to other countries in the shorter term.

I am grateful to the noble Earl for his support for many of the Government’s measures in this area. As he knows, the Financial Policy Committee is responsible for identifying, monitoring and taking action to remove or reduce systemic risks with a view to protecting and enhancing the resilience of the UK financial system. The Government’s remit to the committee makes clear that it should continue to regard the risks arising from climate change as relevant to its primary objective. The Bank of England’s December 2025 financial stability report set out the committee’s assessment of climate-related risk to UK financial stability, which is that it is low relative to other countries in the shorter term.

To ask His Majesty’s Government what assessment they have made of the long-term implications of climate change and nature loss for housing insurability, mortgage lending and household financial resilience.

To ask His Majesty’s Government what assessment they have made of the long-term implications of climate change and nature loss for housing insurability, mortgage lending and household financial resilience.

My Lords, climate change clearly poses a long-term risk to financial stability and household resilience. The Government’s remit to the Financial Policy Committee ensures that it considers climate-related risks as relevant to its primary objective of maintaining financial stability. The Climate Change Committee’s recent report identified declining insurability and reduced mortgage access as credible risks, and the Government will reflect this evidence as they prepare the fourth national adaptation programme.

My Lords, climate change clearly poses a long-term risk to financial stability and household resilience. The Government’s remit to the Financial Policy Committee ensures that it considers climate-related risks as relevant to its primary objective of maintaining financial stability. The Climate Change Committee’s recent report identified declining insurability and reduced mortgage access as credible risks, and the Government will reflect this evidence as they prepare the fourth national adaptation programme.

I thank the Minister for that reply. I hope he has read the adaptation report of the Climate Change Committee, in which it warns very clearly about the effects of increased flood and wildfire risk to the financial sector and the economy more generally. The Minister will remember the effect of the US subprime market on the UK economy from 2008 onwards. In the UK we can already see that property values, insurance availability and mortgage lending are all affected by climate change. Can he give further details as to how urgently the Government are addressing these risks?

I thank the Minister for that reply. I hope he has read the adaptation report of the Climate Change Committee, in which it warns very clearly about the effects of increased flood and wildfire risk to the financial sector and the economy more generally. The Minister will remember the effect of the US subprime market on the UK economy from 2008 onwards. In the UK we can already see that property values, insurance availability and mortgage lending are all affected by climate change. Can he give further details as to how urgently the Government are addressing these risks?

I am grateful to the noble Baroness for her Question. I am very conscious that she is far more expert in these matters than I am. As she knows, the independent Climate Change Committee has made recommendations on the preparedness of the UK for current or future climate change risks. The Government will consider these recommendations as part of the next national adaptation programme.

The noble Baroness mentioned households and mortgages. The Bank of England’s assessment suggested that it would take a severe shock to borrowing costs, household incomes or the cost of essential goods to put aggregate debt servicing under pressure. The Government do not expect climate change to have an immediate impact on mortgages or household resilience, though they recognise the long-term pressures that climate change could have on a property’s value, insurability or suitability as security for mortgage lending. The Government will, of course, continue to work with industry to address any market failures.

I am grateful to the noble Baroness for her Question. I am very conscious that she is far more expert in these matters than I am. As she knows, the independent Climate Change Committee has made recommendations on the preparedness of the UK for current or future climate change risks. The Government will consider these recommendations as part of the next national adaptation programme.

The noble Baroness mentioned households and mortgages. The Bank of England’s assessment suggested that it would take a severe shock to borrowing costs, household incomes or the cost of essential goods to put aggregate debt servicing under pressure. The Government do not expect climate change to have an immediate impact on mortgages or household resilience, though they recognise the long-term pressures that climate change could have on a property’s value, insurability or suitability as security for mortgage lending. The Government will, of course, continue to work with industry to address any market failures.

My Lords, on the issue of financial resilience and climate change, has my noble friend seen the CBI report that came out a few weeks ago, showing that the net-zero economy is now worth over £100 billion and is promoting growth in all parts of the UK? Having said that, what does he

make of the leader of the Opposition’s now opposition to net zero and wish to repeal the Climate Change Act 2008 and deselect Tory candidates who support net zero? What impact would that have on our economy?

My Lords, on the issue of financial resilience and climate change, has my noble friend seen the CBI report that came out a few weeks ago, showing that the net-zero economy is now worth over £100 billion and is promoting growth in all parts of the UK? Having said that, what does he

make of the leader of the Opposition’s now opposition to net zero and wish to repeal the Climate Change Act 2008 and deselect Tory candidates who support net zero? What impact would that have on our economy?

It is a great shame what my noble friend says about the Opposition; with such a significant issue as climate change and the importance of net zero, we want a cross-party consensus to drive forward the measures necessary in this country. He is absolutely right to say that economic growth is our number one mission, but without economic growth we cannot meet our climate change targets, and by investing in climate change measures we can drive greater levels of economic growth. If we step back from that, it would be a great shame and would do serious damage to our economy given that, as my noble friend says, the net-zero economy is growing so strongly.

It is a great shame what my noble friend says about the Opposition; with such a significant issue as climate change and the importance of net zero, we want a cross-party consensus to drive forward the measures necessary in this country. He is absolutely right to say that economic growth is our number one mission, but without economic growth we cannot meet our climate change targets, and by investing in climate change measures we can drive greater levels of economic growth. If we step back from that, it would be a great shame and would do serious damage to our economy given that, as my noble friend says, the net-zero economy is growing so strongly.

My Lords, the Minister is obviously correct that we really do need to step back from this divisive and completely unsubstantiated move away from the consensus on the need to do something about the changes in the climate we are seeing around us day in, day out.

What the Minister said about systemic risk to financial services and long-term risk was reassuring, but I wonder whether I could ask him to have a word with his noble friend, the noble Lord, Lord Stockwood, about the Financial Services and Markets Bill currently going through this House. There are grave concerns that the provisions we put in three years ago to a Bill that the Minister will remember are being watered down when they need to be strengthened.

My Lords, the Minister is obviously correct that we really do need to step back from this divisive and completely unsubstantiated move away from the consensus on the need to do something about the changes in the climate we are seeing around us day in, day out.

What the Minister said about systemic risk to financial services and long-term risk was reassuring, but I wonder whether I could ask him to have a word with his noble friend, the noble Lord, Lord Stockwood, about the Financial Services and Markets Bill currently going through this House. There are grave concerns that the provisions we put in three years ago to a Bill that the Minister will remember are being watered down when they need to be strengthened.

I am grateful to the noble Baroness for her question. She is absolutely right in what she said about climate change. The Intergovernmental Panel on Climate Change—the world’s foremost authority on climate change science—established in its sixth assessment report that climate change is real and is being driven by greenhouse gas emissions. It predicts that if the rate of warming is not limited to 1.5 degrees centigrade above pre-industrial levels, we risk severe and irreversible damage to our planet and our people. Of course, it will be good if we maintain a cross-party consensus on the measures necessary to tackle that.

I heard what the noble Baroness said about financial stability. She will know that the Bank of England’s December 2025 financial stability report set out the committee’s assessment of climate-related risk to UK financial stability: it is low relative to other countries in the shorter term.

I am grateful to the noble Baroness for her question. She is absolutely right in what she said about climate change. The Intergovernmental Panel on Climate Change—the world’s foremost authority on climate change science—established in its sixth assessment report that climate change is real and is being driven by greenhouse gas emissions. It predicts that if the rate of warming is not limited to 1.5 degrees centigrade above pre-industrial levels, we risk severe and irreversible damage to our planet and our people. Of course, it will be good if we maintain a cross-party consensus on the measures necessary to tackle that.

I heard what the noble Baroness said about financial stability. She will know that the Bank of England’s December 2025 financial stability report set out the committee’s assessment of climate-related risk to UK financial stability: it is low relative to other countries in the shorter term.