Policy and Government

CAP has responded to a call for evidence by the Money and Pensions Service (MaPS) who are seeking to understand the effect that the closure of face-to-face public services during the Covid-19 pandemic had on the accessibility and delivery of debt advice in the UK. We shared our reflections on how the closures impacted clients and how we adapted our service delivery model. We highlighted how early signs show that many clients’ budgets will become unsustainable as a result of the removal of the £20 Universal Credit uplift. We also urged MaPS to ensure stability in the provision of face-to-face debt advice, invest in debt advice marketing campaigns and continue to help people recognise problem debt before the point of crisis.

CAP has responded to the proposals in chapter three of the Scottish Government’s Covid recovery: public health, services and justice system reforms consultation. These proposals seek to place temporary provisions made during the Covid pandemic onto a permanent footing, including raising the minimum debt level for creditor-petition bankruptcy to £10,000 and a longer moratorium period. CAP has welcomed the proposals as beneficial modernisation and improvement to the bankruptcy system in Scotland, with only an amendment to the proposed extended moratorium period to be twelve weeks rather than six months. Read our full response below.

CAP has responded to a consultation by the Joint Insolvency Committee (JIC) about proposed changes to the Statement of Insolvency Practice 3.1 which is a code of practice for Insolvency Providers to follow when advising and administrating Individual Voluntary Agreements. The proposed changes update the statement of practice to be fit for purpose in the current context, but there are additional changes we think are needed also. This includes changes to make sure people can make informed decisions about the most appropriate debt solution for them, improve correspondence with the supervisor, the timeliness with which the certificate of termination is issued and place a a clear responsibility on Insolvency Practitioners to be satisfied that the actions of third party lead generators they receive referrals from meet the expectations set out in SIP 3.1. Read our full response below.

During party conferences CAP Chief Executive, Paula Stringer, took part in a panel event with the Economic Secretary to the Treasury, John Glen MP. The event was hosted by the Centre for Social Justice (CSJ) and also sponsored by Lowell. Paula spoke of the need for a strategic action plan based on sound measurement of financial wellbeing in communities and raised concerns about the impact of removing the Universal Credit uplift. Watch the event on catch-up here. 

CAP responded to Ofcom's consultation asking for views on whether the protections for people in debt or struggling to pay are appropriate, or need strengthening. Some of the key points we've raised are that collections practices must ultimately be based on an understanding of the customer’s unique set of personal circumstances. Telecommunication providers should consider payment arrangements for arrears based on affordability, making use of the Standard Financial Statement, rather than a fixed period e.g. three or six months. We have also supported calls for social tariffs being made readily available to those customers in debt and on low incomes.