My pick of last week’s news is the Treasury’s consultation on Breathing Space and a Statutory Debt Repayment plan.
Tweet of the week
It is with great sadness I have resigned from one of the best jobs in Government. Thank you so much for all the very kind messages of support I have received throughout the day. Politicians come and go but principles stay with us forever. pic.twitter.com/rD8bEbCQcK
— Tracey Crouch (@tracey_crouch) November 1, 2018
- Breathing space scheme: consultation on a policy proposal HMT: This consultation, announced in the budget, is for the implementation of a breathing space and a statutory debt repayment plan.
- Chancellor extends “breathing space” to protect millions of people in debt – but these bills will keep coming Mirror: New rules have been put forward to give people in problem debt the opportunity to take control of their finances.
High cost credit:
- Interest-free loans: Hammond’s plan to solve problem debt Guardian: Government says loans will help people trapped in debt caused by payday lenders
- How the Wonga administrators will handle complaints & refunds – my article – they are proposing an automated affordability checking tool.
- Letter from Wonga administrators – do you need to do anything? – my article
Discharged debtor keeps PPI fund in Dooneen v Mond TLT blog: The judgment confirmed that a trustee is not entitled to property discovered after a trust deed has been terminated.
Number of UK households in energy debt rises by 300,0000 Guardian: Nearly £400m is owed to power companies following latest round of hikes, says report.
HMRC to be preferred creditor in insolvencies Economia: the Budget Red Book suggests they will apply only to taxes collected on behalf of HMRC (like VAT and PAYE).
Jubilee 2022: Writing off the student debt Progressive Economy Forum: Labour as of yet has no policy on what to do about outstanding student debt.
New Debt Arrangement Scheme Consultation goes live AIB: …consider options to increase the uptake of DAS and reduce bureaucratic burden.
TV show prompts record number of calls to Christians Against Poverty Premier: In total, 3,708 enquiries were made in October – a 41 per cent increase on the same period last year.
Prison sentences for council tax debts to end in Wales BBC: At least 62 people were jailed in Wales and England in 2016-17 over the issue – nearly a third of them from Wales.
Universal credit and benefits news
What does the Budget mean for universal credit (and how much will families benefit – or not)? CPAG’s excellent summary
Benefit cap leaves poor families with mounting debt, study shows Guardian: for every child whose parents move back into work as a result of the cap, eight more will grow up in families whose financial circumstances have worsened.
Universal Credit: addressing the risks of managed migration Social Security Advisory Committee: We fear that, in too many cases, [claimants] may be adversely impacted by the proposals or fall out of the social security system entirely.
Too ill to work, too broke not to MMHPI: The cost of sickness absence for people with mental health problems.
- Crouch understood the blight of high-stakes gambling machines Times (£ paywall) The only beneficiaries from a delay to implementing this policy are the corporate bookmakers
- Online gambling firms face tough new fines BBC: The Gambling Commission tightened regulations after customers complained that small print allowed companies to withhold winnings.
Invisible Britain: Telling the stories of those so often overlooked New Statesman: a new book of portraits and interviews gives a voice to people affected by social issues such as austerity, Brexit, deindustrialisation, nationalism and cuts to public services.
DP18/9: Fair Pricing in Financial Services FCA: The judgement of when price discrimination is fair is not always straightforward.
Two housing horror stories:
- Why did the council ‘house’ me in a tent? BBC
- Tragedy as baby who slept in car with homeless parents dies Bournemouth Daily Echo