Breathing Space Scheme

Part of the debate – in the House of Commons at 1:08 pm on 19th June 2019.

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Photo of Steve McCabe Steve McCabe Labour, Birmingham, Selly Oak 1:08 pm, 19th June 2019

I welcome the proposals, although it has taken us since 2017 to get to this point and it is going to take another two years to get the first part operational. I am glad the Minister is moving swiftly and not dragging his feet.

Two problems for people who get into debt, particularly over tax credits or benefit clawback, are the interest charges that are applied as they try to repay and the management fees charged on top by debt-recovery agencies, which mean that the debt increasingly expands. The Minister could have a direct input on both those things; why does he not put a ceiling on those charges, rather than simply using a freeze?