Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential merits of offering payment holidays for any debt owed to the Government, in the context of the cost-of-living crisis.

The Cabinet Office’s Government Debt Management Function sets the Government Debt Strategy and the Debt Functional Standard for how debt is managed. These are underpinned by Fairness Principles that provide guidelines for managing debt and supporting people in financial difficulty. The Government has also published a Vulnerability Toolkit that provides front line staff with best-practice tools to identify and support vulnerable individuals.

Government departments continue to work with individuals to support them to manage any debts, including by referring them to free and impartial money and debt advice. Anyone who is concerned about their ability to pay should contact the department they are in debt to so they can review their financial circumstances and discuss the support available.

To support people in problem debt, HM Treasury continues to maintain record levels of funding for free-to-client debt advice in England in 2022-23. In addition to this, the Breathing Space scheme launched in England and Wales last year, offering people in problem debt a pause of up to 60 days on most enforcement action, interest, fees and charges, and encouraging them to seek professional debt advice.