The foisting of high-cost credit on the poorest is front and centre this month with the launch of the End High Cost Credit Alliance (Michael Sheen launches campaign against high-cost lenders, 20 March). For those millions who can’t access mainstream products, high-cost lenders appear to offer the only way to afford everyday necessities. But those firms aren’t the only options out there and it’s why investment in – and backing for – ethical lenders such as Moneyline, Fair For You and Street UK is central to the mission of growing an inclusive economic system.
The good news? Ideas to puncture the “poverty premium” are out there and have started to drive policy – ideas such as my credit-worthiness assessment bill, aiming to help Britain’s tenants access more affordable credit. The Big Issue has tested this concept in the social housing sector via the rental exchange scheme, and it has shown that over 80% of tenants see their credit scores rise once rental history is incorporated into a credit assessment. We’re beginning to turn the dial towards inclusion. But ask yourself, as Mr Sheen has done, what can you do to help?
John Bird
House of Lords
• One way to reduce the level of evictions and the added costs associated with it would be to reinstate the 12-month backdating rules. Many do not know of an entitlement, therefore do not claim until arrears have built up. Homelessness due to rent arrears costs billions extra in emergency accommodation costs. Not to mention disruption to schools and healthcare. The Department for Work and Pensions is aware of this, yet it seems little is being done to deal with the issue. Spend more to save even more.
Gary Martin
London
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