Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what discussions she has had with regulators on the affordability of consumer credit products.

The Government recognises that, when provided responsibly, credit can play an important role in helping people manage unexpected expenses and smooth their cash flow. Access to suitable, affordable credit products can support people’s financial resilience and help them achieve their financial goals. For this reason, the Government is committed to improving access to affordable credit. HM Treasury regularly engages with lenders and regulators on a range of policy matters, including how the provision of affordable credit can be strengthened.

The Government’s Financial Inclusion Strategy sets out an ambitious package of measures to improve access to affordable credit. The coordinated action of industry, civil society, governments, and regulators is key to delivering this. The Financial Inclusion Strategy includes support for the community finance sector and a pilot of a small-sum lending scheme, run by Fair4All Finance, which will test the offer of small value loans from a mainstream lender.

HM Treasury will be participating in the Financial Conduct Authority’s Affordable Credit Workshop which builds on momentum from previous workshops held in partnership with Fair4All Finance and the Financial Inclusion Strategy, with a focus on identifying further opportunities to improve access to credit and agreeing any additional actions to take forward.