Our response to the July 2017 insolvency statistics
28 July, 2017
In response to the release of today’s insolvency statistics, Peter Tutton, Head of Policy at StepChange Debt Charity said:
“A small decline in the numbers of people going insolvent should not provide any false comfort over the risks to household finances. The levels of personal insolvency in the UK remain high by historical standards, the level of consumer borrowing is high by historical standards and the numbers of people seeking help from StepChange Debt Charity are at record levels. With the Bank of England raising concerns over the growth of lending, now is the time for Government to acknowledge that debt is a major public policy issue.
“With 2.9m people in the UK struggling with severe problem debt1 and only a relatively small fraction taking up insolvency options, there remain questions as to whether the current legal help is really meeting the needs of people in financial difficulty. Both the Conservative and Labour Party manifestos included provisions for a ‘Breathing Space’ scheme that would see those with temporary financial difficulties given protection from spiralling debts and enforcement action. As a proposal with cross-party support, we urge the Government to bring forward proposals and ensure that people struggling with debt get the right support and protections.”