Thank you for contacting me about families in debt.
The Families with Children and Young People in Debt (Respite) Bill, introduced by Kelly Tolhurst MP, would place a duty on lenders to provide financial respite for families with children and young people in debt.
I am pleased that the Government is committed to exploring whether some form of 'breathing space' would be a useful and viable addition to the range of debt solutions. HM Treasury and the Insolvency Service have been asked to explore and identify possible options and have begun work on a review.
Further to this, action has been taken to reduce levels of personal debt. Household debt as a proportion of income has fallen to 142 per cent in 2016, down from a peak of 160 per cent in 2008. The Government's plan for a higher wage, lower welfare society makes it easier for families and working people to save, and includes the new National Living Wage which will mean a pay boost for 1.7 million workers this year.
Thank you again for taking the time to contact me.
MP for Central Devon
Comptroller of the Household and Government Pairing Whip