Financial Inclusion/Family Budgets

Part of Oral Answers to Questions — Work and Pensions – in the House of Commons at 2:30 pm on 31st March 2014.

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Photo of Iain Duncan Smith Iain Duncan Smith The Secretary of State for Work and Pensions 2:30 pm, 31st March 2014

The Financial Conduct Authority will limit continuous payment authorities, which allow payday lenders to take money out of people’s bank accounts, to two payments. The FCA will keep that under review. It is also preventing CPAs if a person would be left without money to buy essentials or for priority debts. We have already seen some payday lenders leave the market because it is being restricted in the right way. It is worth saying that before the last Government came to power, payday lending did not exist, but it spiralled to £1 billion-worth under them.