Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment his Department has made of the level of personal debt due to the covid-19 outbreak in (a) Cynon Valley, (b) Rhondda Cynon Taf and (c) Wales.

Data on levels of over-indebtedness in Cynon Valley, Rhondda Cynon Taf and Wales was last published in 2018 by the Money and Pensions Service (MaPS). MaPS is currently completing a review of its measure for need for debt advice and will publish the outcome and latest data later in 2021.

The Government has delivered unprecedented support for living standards during this challenging time, protecting livelihoods with the Self-Employment Income Support Scheme (SEISS), the Coronavirus Job Retention Scheme (CJRS), and temporary welfare measures.

The Government will extend the CJRS for a further five months from May until the end of September 2021. Furloughed workers in the UK will continue to receive 80% of their current salary for hours not worked, up to £2500 per month. The scheme will be extended on current terms – with no additional employer contributions – until the end of June 2021. The SEISS will also continue until September, with a fourth and a final fifth grant.

At Budget 2021, the Government also announced a six-month extension to the temporary £20 per week uplift to the Universal Credit (UC) standard allowance, well beyond the expected end of restrictions and reopening of the economy. The Government has also announced similar support for eligible Working Tax Credit (WTC) claimants.

The Government is also maintaining the increase to Local Housing Allowance rates for UC and Housing Benefit in cash terms in 2021-22, an increase which is worth an extra £600 on average in 2020-21 for over 1.5 million households.

To help people in problem debt get their finances back on track, an extra £37.8 million support package has been made available to debt advice providers this financial year (2020-21), bringing this year's budget for free debt advice in England to over £100 million. Delivery of debt advice is a devolved matter and this additional funding was matched for the devolved administrations, resulting in an extra combined £5.9 million that was made available to Scotland, Wales and Northern Ireland.

Last year, the Government also announced the immediate release of £65 million dormant assets funding to Fair4All Finance, an independent organisation that has been founded to support the financial wellbeing of people in vulnerable circumstances. The funding is used to increase access to fair, affordable and appropriate financial products and services for those in financial difficulties

From May, the Breathing Space scheme will offer people in problem debt a pause of up to 60 days on most enforcement action, interest, fees and charges, and will encourage them to seek professional debt advice.