Policy and Government

CAP’s debt help service supports people in finding a route forward. Often, this is through an insolvency solution that provides a fresh start for people with insurmountable financial difficulty. However, too many people face roadblocks that make finding a route out of debt impossible. CAP’s latest report, Simplify the solution, examines how the Debt Relief Order (DRO) can be improved to ensure debt relief is effective, accessible and affordable for all. Click here to read Simplify the solution.

The APPG on Poverty has launched a call for evidence on the impact of ending the temporary Covid-19 £20 uplift in universal credit and tax credits. As well as, the impact of not extending the uplift to legacy and other benefits during the Covid-19 pandemic. CAP has entered a submission detailing our concerns for CAP clients who stand to lose this vital lifeline and those who were unjustly excluded from it. This evidence will help inform the APPG’s representations to Government on this issue. 

The Financial Conduct Authority (FCA) has proposed several minor changes to their rules and guidance to ensure that they do not contradict new legal requirements for debt advisors and consumer credit firms under the Breathing Space scheme regulations which commence in May 2021. CAP has responded to the consultation to support the proposed changes to the consumer credit guidance, but to stress the need for further changes to be kept under review and for some clarifications to be made in the debt advice rules and guidance too.

CAP has responded to the Scottish Government's consultation on its Digital Strategy. We were pleased to see the No one left behind section feature in the strategy and that ensuring everyone has access to the internet is one of the Government’s central aims. However, affordability as a barrier to getting online needs to be considered more significantly in the strategy. CAP’s research shows that many low income households are unable to afford internet access or devices, and therefore this needs to be addressed in the appropriate section.

We have responded to CCW's independent review of affordability support for financially vulnerable water customers in England and Wales. In our response we called for greater consistency across water suppliers and highlighted the problems with the current funding method. CAP would also like to see greater collaboration between water suppliers and the debt advice sector, as well as improved joint working between Affordability and Debt Management teams internally.