The Treasury select committee’s report (Councils pursuing debtors with excessive zeal, says MPs’ report, 26 July) has done a good job of putting the issue of household finances high on the agenda, where it belongs.
In particular, the committee’s focus on the way the public sector collects debts is a welcome one. Our Stop the Knock research into local councils’ use of bailiffs showed that 2.3m debts were passed to bailiffs by local authorities in England and Wales in 2016-17.
At the National Debtline run by the Money Advice Trust, we regularly hear of the emotional and financial impact that poor debt collection practices can have on people who are already in severe financial difficulty.
More than one in four of the people we help have a council tax debt. The report shines an important spotlight on the challenges many households face paying day-to-day bills. We hope the government will act on the report’s recommendations with urgency.
Joanna Elson
Chief executive, Money Advice Trust
• The Treasury committee report on household finances is a striking reminder of the need for fairer access to more affordable credit. My creditworthiness assessment bill, which has cleared the Lords and now heads through the Commons, is central to this objective.
At present, the rental payments of Britain’s 11 million tenants are not recorded or recognised in the same way that mortgage borrowers’ payments are. My legislation would ensure that, when rental and council tax data is shared by an individual, lenders will take it in account. By improving renters’ credit files in this way, we can prevent the most vulnerable households from falling victim to high-cost credit, as well as increasing the number of responsible borrowers.
The government’s response to my bill, the Rent Recognition Challenge, is an important part of this equation. Although such initiatives as the Rental Exchange are already helping tenants to share their data, it will require tenants, landlords, credit ratings agencies and lenders to march in lockstep behind my bill if we’re to fulfil our shared mission of equalising access to lower-cost credit.
I therefore echo the committee’s call for the government to lead the charge in helping households to become financially resilient, and hope this process can start with Her Majesty’s Treasury backing my cross-party bill.
Let’s give credit where it’s due. Let’s make rent count.
John Bird
House of Lords
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