Oral Answers to Questions

Debate between Ed Davey and Stella Creasy

Thursday 31st January 2013 Commons Chamber

[The Secretary of State for Energy and Climate Change (Mr Edward Davey)]

We have a range of initiatives to help people with their energy bills, including tariff reforms, energy saving programmes and additional help for those on the lowest incomes. From our proposals to help get consumers on to the cheapest tariffs to the green deal, and from the warm home discount to our promotion of collective switching, this Government are working hard to help people to keep their energy bills down.

[Stella Creasy]

As payday loan adverts appear all over the receipts for prepayment meters and their rates remain artificially high, what advice do the Government and the Secretary of State have for those who have to take out payday loans to pay their energy bills? Does he think it is a good or a bad thing?

[Mr Davey]

The hon. Lady is a real campaigner on payday loans and I congratulate her on her work. She knows an awful lot about interest rates on unsecured credit, including payday loans, and how high they can be. I therefore hope she tells Labour Front Benchers about them. They have criticised the interest rate on the green deal, but that is one of the most competitive interest rates around for unsecured credit. The green deal is a good job, and will help everyone who is suffering from fuel poverty.

Gas Market Fraud

Debate between Ed Davey and Stella Creasy

Tuesday 13th November 2012 Commons Chamber

[Mr Davey]

My hon. Friend makes a good point. At the moment, certainly so far as Ofgem is concerned, the fines do not go to the consumer. This Government have consulted on changing that, however, and we are making provisions in the forthcoming energy Bill to ensure that any fines would go to consumers if malpractice had been proven. That might not apply to whatever offence is found as a result of these investigations, but we are changing the law so that when an energy company does not play fair by a customer, the customer will benefit from the fines imposed.

[Stella Creasy (Walthamstow) (Lab/Co-op)]

The Secretary of State trumpets the work that the Government are doing to tackle abuses in the markets that affect consumers, yet just today we have found out that 5 million people are having to turn to legal loan sharks because of the Government’s failure to regulate the consumer credit market. Will he give me an assurance that there will be no delay in taking action in relation to that market, so that those who are now facing bills that push them further and further into debt can get some redress?

[Mr Davey]

I am grateful to the hon. Lady for her question. She will know that consumer credit markets are regulated. I know she has been campaigning for a particular type of regulation and a particular type of credit, but it would be a caricature to say that consumer credit markets are not regulated at all. These markets are also regulated, and this Government have strengthened that regulation.

Oral Answers to Questions

Debate between Ed Davey and Stella Creasy

Thursday 27th October 2011 Commons Chamber

[Mr Davey]

My hon. Friend will know that the Chancellor has announced that we will move the period of unfair dismissal from one year to two years—I know that my hon. Friend welcomes that—which will deal with exactly the point he has made. He will also know that we have an employment law review and a red tape challenge to ensure that we have employment laws in this country that will make our labour market fair and efficient.

[Stella Creasy (Walthamstow) (Lab/Co-op)]

T5. What message do the Government think they are sending to the thousands of families in this country who are now struggling in debt as a result of payday loans, by allowing the legal loan sharks not only to advise them on employment law, but to swell their party coffers?

[Mr Davey]

I was expecting the hon. Lady to thank the Government for putting forward an idea that she and other Members have been pressing on the Government: namely, to launch research on the impact of a cap on the total cost of credit. I am really rather disappointed in her.

Oral Answers to Questions

Debate between Ed Davey and Stella Creasy

Thursday 14th July 2011 Commons Chamber

[Stella Creasy (Walthamstow) (Lab/Co-op)]

Yesterday the Prime Minister told us that Citizens Advice was one of the most admired organisations in the country. Given that it and Consumer Focus are boycotting the payday industry proposals on a voluntary code of practice, does the Secretary of State think it appropriate that his Lib Dem colleagues are in Parliament today hosting a reception to endorse it?

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Mr Edward Davey)]

The hon. Lady will know that the Government are working very closely with Citizens Advice on all these sorts of issues and that it is important to listen to the industry on a range of issues. I would have thought therefore that she welcomed hon. Members listening to the industry. She often does not listen to the industry and so often is not as informed as she could be.