Policy and Government
At CAP we don’t want to just treat the symptoms of poverty; we also want to address the causes. That’s why we’re working tirelessly behind the scenes to shape and influence the policies that affect our clients. It means we get to speak on behalf of the vulnerable to the people with the power to change their lives. And our voice is growing louder.
Industry professionals seek our opinion on current issues, and our recommendations get heard in Parliament. Change is happening. Below are some of the ways in which we are fighting for justice amongst the country’s key decision-makers.
12 November 2015
Following the changes to the Debt Relief Order (DRO) eligibility criteria in England and Wales from October 2015, Northern Ireland is now proposing to make the same changes. The proposed amounts are a debt limit of £15,000 and asset limit of £1,000. We responded in support of the amendments, but also advocating for a higher debt limit of £30,000 to help more of those who are Too poor to go bankrupt. Read our response below and CAP’s Too poor to go bankrupt report here.Read the full document here
24 October 2015
As part of their commitment to promote empowering and effective consumer communications, the Financial Conduct Authority (FCA) released a discussion paper on smarter communications. At CAP we work hard to ensure a high standard of communication with clients, and also have experience of the type of communication our clients receive from creditors. We provided the following response to the FCA, highlighting examples of CAP's communication, as well as areas for improvement in the industry and regulations. Read our response below and the FCA’s discussion paper here.Read the full document here
02 October 2015
October sees the new Debt Relief Order (DRO) debt and asset limits come into force, as announced back in January. The Insolvency Service predict that this will enable 3,600 more people to use DROs instead of more expensive insolvency options.
Yesterday, CAP submitted the first DRO for a client who was previously ineligible for a DRO due to having just over £18,000 worth of qualifying debt, which built up when her relationship broke down and she lost her job while pregnant. If she had been unable to access a DRO it would have taken her nine and a half years on a severely restricted budget to pay back her debt, or three years to save for the bankruptcy fee.
This follows CAP's involvement in the campaign to raise the maximum debt limit for a DRO amongst other proposals, as more than a third of our clients, many of whom are vulnerable, were too poor to go bankrupt. The DRO debt limit has now been raised from £15,000 to £20,000 and the asset limit from £300 to £1,000. We estimate that this will allow 34% of our clients who are too poor to go bankrupt and only ineligible for a DRO due to the previous debt limit to access a debt solution.
You can read the Insolvency Services’ announcement, our response to the Insolvency Services’ consultation and CAP’s Too poor to go bankrupt report by clicking the links.
23 September 2015
17 September 2015
There is a large overlap between the needs of food bank users and CAP clients. Through partnership we tackle both the short-term need and the root causes of the problem, providing long-term solutions to crisis situations. CAP is working closely in several ways with food banks in many areas of the UK, find out more here:Read the full document here