Question to the HM Treasury:

To ask Her Majesty's Government what figures they have on the increase in the number of people in the UK using high-cost credit, such as ‘buy now pay later’ debt schemes, to pay their energy bills since 1 April.

HM Treasury regularly monitors developments in the consumer credit market, including the use of Buy-Now Pay-Later (BNPL) credit products, as part of its normal process of policy development.

However, it does not hold information regarding the number of people using BNPL or other types of credit to pay their energy bills. Instead, HMT draws on the research of various stakeholders, including consumer groups and the wider financial services industry, to inform policy development.

As an interest free product, the government does not consider BNPL to be high-cost credit.

However, the government recognises that BNPL products do pose several potential risks of consumer detriment, as set out in The Woolard Review into the unsecured credit market. That is why on 2 February 2021, the Government announced its intention to regulate BNPL products in a proportionate manner.

The Government published a consultation on policy proposals for the regulation of BNPL on 21 October 2021, which closed on 6 January 2022. The Government is now reviewing responses to this consultation and considering next steps and intends to publish a consultation response in the coming weeks.