Policy and Government

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. 

The Taking Control campaign has published a briefing on enforcement agent activity following Coronavirus suspension. The briefing builds the case for the Government to legislate the ban of entry/visits to households in tier 2 or 3 areas. The paper also contains case studies of agent misconduct; including misrepresentation of powers, acting aggressively or ignoring vulnerabilities. CAP is part of the campaigning group, and joins the voices asking for an independent regulator in the sector.

Today the Chancellor set out his hotly anticipated Spending Review. Once intended to be a wide ranging review of government spending in support of the levelling up agenda, today’s announcement instead centered on steadying the economy and public services through the ongoing coronavirus pandemic. The Chancellor said his immediate priority was to protect people’s lives and livelihoods, deliver stronger public services and invest in infrastructure. This included a modest increase to the National Living Wage and pay rise worth £250 for low paid public sector workers. 

At CAP, we welcomed this support but are disappointed that the Chancellor did not do more to smooth the road ahead for those already living in poverty. People across the UK are worried about the ongoing and uncertain impact the crisis will have on their personal finances, with 5.6 million estimated to already be struggling to afford essentials. Today was a missed opportunity to shore up the incomes of families who need extra support. We are urging ministers to make the Universal Credit £20 a week uplift permanent, further extending it to those on legacy benefits. This would make a massive difference to many families, give them peace of mind going into winter and offer them a lifeline during the pandemic recovery.