Debt Advice (FCA Levy)

Debate between Cathy Jamieson and Yvonne Fovargue

Tuesday 21st January 2014 Westminster Hall

[Cathy Jamieson]

Again, my hon. Friend makes a valuable point. In bringing my remarks to a conclusion, I want to reiterate some of the points that were made in the debate in the main Chamber last night. As she said, the FCA is a new organisation and it has been given a wide-ranging remit. It has consulted on a number of issues and new rules will be introduced for a range of things, but I would not like to see the specific issue of the levy slip through the net. My hon. Friend the Member for West Bromwich West referred to the recommendation for a levy in the Business, Innovation and Skills Committee report as the recommendation that has almost gone “under the radar”. Hopefully it is no longer “under the radar”; as I say, I certainly do not want it to slip through the net because of the FCA’s wide range of responsibilities.

The Minister, who has been listening intently, will have heard the view expressed in both debates on this subject—last night and today—that there is a genuine consensus across the House on this issue, and hopefully people from the FCA and MAS have heard that too. There may be other areas where we would disagree, but there has been a genuine consensus on this issue, which has built up during months, if not years, of campaigning by individuals who have been very committed to tackling this problem and by organisations that have been absolutely at the sharp end and see it every day. Those individuals and organisations have the ideas both to deal with the problems when they are identified and—crucially—to put in place preventive measures. There was some discussion of those measures last night, which include, for example, action on advertising, education and so on, so that we can try to prevent people getting into debt in the first place. However, if they do get into debt, the correct services must be there for them, not only to point them in a direction to get a bit of information but to help them to work their way out of debt, including making some of the lifestyle changes that are perhaps associated with getting out of debt.

[Yvonne Fovargue]

Does my hon. Friend agree that today is really a good time for this debate and that, if people want to see that the levy is not a dry subject and has an effect on individuals, they should know that this week Twitter has the hashtag #cablive, where the real-life experiences of people visiting CAB, and of the volunteers and paid staff who are crucial to helping them, are being demonstrated?

[Cathy Jamieson]

My hon. Friend makes a very important point because, as we discussed last night, this is of course debt awareness week. The comment that I made last night was that for some people this week may be a week of awareness but for others it is how they have to live their lives, to deal with debt problems. I am sure that the information that she has just given will encourage people to follow the process on Twitter and obtain more first-hand information from those who are using these services and those who are providing them.

I want to give the Minister further time to respond to the debate, and to allow for further interventions, because these debates give Back Benchers the opportunity to ask questions. First, however, can the Minister say whether he has already had any discussions with MAS and the FCA about this issue? Does he intend to look in more detail, over the coming months, at the structure and the nature of the levy and whether there could be any improvements there? Will he also consider an idea that we Opposition Members have been advancing, which is that, in addition to the provision of debt advice and money advice resulting from a levy on payday lenders, there should be a levy supporting credit union development and alternative low-cost providers? I hope that the Minister will answer those questions.

I thank all hon. Members who participated in the debate last night and, crucially, in this debate. I am sure that the debate is no longer under the radar. I hope that it will be out there more and that people will see that it is important in the wider scheme of things, as we try to tackle the problem.