Policy and Government

Last year the Government announced their intention to bring new unreleased digital Buy-Now Pay-Later products into consumer credit regulation. CAP has now responded to a HM Treasury consultation about how this regulation should be established. Regulation is essential for consumer protection, especially considering some of the particular dynamics of this type of lending, and we have argued that, in addition to the existing consumer credit regulatory regime, these lenders must be made responsible for the way their products are advertised and promoted by retailers. Read our full response below.

CAP responded to the Welsh Government's consultation for views on their proposal to amend earnings thresholds for Attachment of Earnings Orders (AEO) used by local authorities to collect unpaid council tax. We agreed with the policy intention to uprate the earnings thresholds in line with cost of living, asking for this to be done annually in future. We also shared our views on the weakness of the current legislative approach of deducting a fixed percentage of net earnings. Within the current framework, we suggested deductions be made progressively, similar to income tax bands, but also proposed the adoption of an income and expenditure approach, similar to the County Court Attachment of Earnings process. Read our full response below. 

CAP responded to the Civil Justice Council consultation on pre-action protocols. Pre-action protocols intend to give a framework for parties to resolve and narrow down disputes before taking legal action. We broadly agreed with the importance of having pre-action protocols. To protect vulnerable individuals who lack the capacity to deal with or dispute their liability for a debt, we also welcomed the proposals that increase the expectations on the party intending to make a claim. We especially welcomed the proposal to extend the scope to claims brought by private landlords and for all mortgaged properties that are occupied as a home. We also encouraged an exploration of the practicalities and benefits of creating a new mandatory protocol for Council Tax before the case is taken to court for a Liability Order. Read our full response below.

The Universal Credit uplift, introduced in response to the Coronavirus pandemic in April 2020, was formally withdrawn on 6 October 2021. Over the course of the next five weeks claimants saw this reflected in their Universal Credit payments. Two months on, the reality of this for claimants has set in and at CAP, we have begun to see evidence of the devastating impact this has had for millions of people across the UK. A survey of 624 people receiving debt help from CAP, conducted between 8 and 25 November 2021, found that more than half (54%) of clients whose payments reduced when the uplift was removed have already experienced at least one form of financial hardship - either falling behind with bills, going without essentials or falling into more debt. And 12% had already experienced all three of these. Read the full results in the briefing below.

2.6 million people in the UK do not use the internet regularly, and 14.9 million have very low levels of engagement (according to the Lloyds UK Consumer Digital Index). This report presents data from CAP clients, as well UK-wide population data from Experian Mosaic, to reveal the barriers that cause persistent and periodic digital exclusion – including capability and confidence, lack of access to devices and infrastructure, and the ongoing cost of internet data or a broadband connection. Click here to read more and download the report.