Debt

Money and Pensions Service outlines the next steps it will be taking to shape the future of community-based debt advice commissioning in England

First phase to gather evidence to take place over at least the next year, followed by a consultation in late 2023 and then a final mobilisation phase

Government launches call for evidence on review of personal insolvency framework in England and Wales

Views sought on issues including balance between providing debtors with fresh start and ensuring returns to creditors, and how insolvency solutions should be paid for

Scottish Government and public bodies urged to work together to develop public sector debt management strategy for Scotland

Social Justice Committee also calls for new national standards for council tax collection and for government to consider placing them on a statutory footing

More than 60,000 breathing space registrations were made in the first year of the debt respite scheme

New statistics also highlight regional variation in registrations, and that around two-thirds were made by StepChange Debt Charity

Minimum debt level that an individual must owe before a creditor can make them bankrupt in Scotland to rise to £5,000 under provisions in Bill passed by MSPs

New legislation also makes permanent the increase in the time that debtors facing bankruptcy have to seek advice without creditors pursuing their debt

Committee of Advertising Practice warns insolvency practitioners and lead generators that they must be extremely careful to ensure their advertising is responsible and does not mislead

New Enforcement Notice outlines that debt management adverts must clearly state the risks and fees involved, and must not imply association or approval from government, charities or regulated advisory bodies

Buy Now Pay Later sector to be required to carry out affordability checks on new borrowers

Government plans outlined in response to consultation will also require lenders to be approved by the FCA, and include a new right for borrowers to complain to the Financial Ombudsman Service

Government commits to reform of ‘highly prescriptive and increasingly cumbersome and inflexible’ Consumer Credit Act

Consultation on the direction of reform, that could move much of the Act from statute to sit under the remit of the FCA, is expected to be published by the end of the year

Cancellation of up to £1,500 of a student’s living costs loan liability in Wales in the academic year 2022/2023

New statutory instrument

Government launches consultation on new statutory debt solution focused on the repayment of debt, rather than debt relief

New Statutory Debt Repayment Plan scheme will be available to people in England and Wales, providing a ‘more robust and effective route out of problem debt’

Debt commitments in the 2022 manifestos of the Northern Ireland political parties

Money and Mental Health Policy Institute issues new guidance to help energy providers support vulnerable customers

Charity sets out four steps to help minimise distress caused by missed payments and debt

Expanded data sharing exercise between government and local authorities is enabling greater recovery rate of council tax debt

DWP says latest pilot is 'strengthening the application of attachment-of-earning orders' where deemed appropriate for debtors

Lords Select Committee draws regulations that freeze earnings repayment thresholds for student loans to the ‘special attention’ of the House

Peers raise concerns about the impact the change will have on borrowers, particularly as the government intends to maintain the freeze until 2024/2025

We Are Debt Advisers, Advice UK and Unite Debt Advisers Network issue joint call for MaPs to engage in a ‘meaningful and full consultation’ on the future of debt advice

Campaign document also call for immediate changes to debt advice contracts from April 2022 and for MaPS to 'learn the lessons' from failure of previous commissioning process

England Illegal Money Lending Team welcomes report that proposes action to address the fact that a million people are in debt to an illegal lender

CSJ report highlights emerging trends in illegal money lending and the menacing techniques and exploitative methods used by loan sharks to deceive their victims

Commencement of provisions that reform the Scottish system of limitation periods for initiating enforcement action in relation to certain rights and obligations including to repay debts

New statutory instrument provides for three year’s advance warning before changes under the Prescription (Scotland) Act 2018 are introduced