Government looking at six-week 'breathing space' for indebted households
1 min read
People suffering from problem debt could get a six-week 'breathing space' under plans unveiled by the Treasury today.
Ministers made the move after concerted pressure from the House of Lords, where a cross-party group of peers had backed an amendment calling for a grace period.
The idea of a 'breathing space' was mooted in the Conservatives' recent election manifesto, but the Government had not taken any action since June's vote.
That prompted a move, spearheaded by shadow business minister Lord Stevenson, to include the measure in the new Financial Guidance and Claims Bill, which begins its reports stage in the Lords today.
The Treasury announced this morning that it would seek evidence on the proposals, which would see individuals given a break where they would not be subject to interest, charges or enforcement action from bailiffs.
Economic Secretary to the Treasury Stephen Barclay said: “For many people in the UK problem debt seems impossible to escape. Its effects can be far-reaching, impacting all aspects of a person’s life and leaving them feeling helpless.
“That is why we are working to give people who are overwhelmed by debt, more time to seek advice, find a workable solution, and help get their lives back on track.”
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