Question to the HM Treasury:

To ask the Chancellor of the Exchequer, when she plans to bring forward legislative proposals to increase the regulation of buy-now pay-later lenders; and what estimate she has made of when that legislation will take effect.

Across the UK, millions have used Buy-Now, Pay-Later (BNPL) products, which can be a helpful way of managing finances from month to month. However, without regulation, there are risks: that is why the government believes consumers need proper protections. The government has made regulating the BNPL sector a priority and in October 2024 it published a consultation setting out its plans for doing so.

Final legislation is expected to be laid in Parliament later in the Spring, and after the legislation has been made, the Financial Conduct Authority (FCA) will consult on and finalise its tailored rules for BNPL products. We expect regulation to be in place 12 months after the legislation has been made.