Christians Against Poverty (CAP) has responded to the King’s Speech, urging the Government to go further in tackling the root causes of poverty, alongside providing vital protection for those in financial distress.
While CAP recognises the Government’s spotlights on tackling poverty and the commitment to welfare reform, apprenticeships, and measures to address unemployment, the charity has highlighted two critical areas where their experience of working with thousands of clients each year has shown the need for urgent action. These focus on ensuring that every household has a liveable income that enables them to afford the basic essentials, alongside introducing statutory regulation for enforcement agents to ensure a fair approach to debt collection for people who are facing financial crisis.
We are seeing poverty tighten across the UK. For too many of the people we support, debt isn’t the result of overspending, but a deficit of income. You cannot budget your way out of a situation where your income doesn’t cover the cost of food, rent, and heating.
Stewart McCulloch, Christians Against Poverty Chief Executive Officer
The need for liveable incomes
With inflation increasing, CAP’s local debt advisors continue to see a record number of households who simply do not have enough money coming in to cover the cost of basic essentials such as energy, food, clothing and fuel.
Stewart McCulloch, CEO of Christians Against Poverty, says:
“While the bills laid out in the King’s Speech today provide some direction, the Government must prioritise ensuring that the social security system and the minimum wage are fit for purpose. We need a ‘liveable income’ floor that guarantees no one in our society is forced to choose between heating their home or feeding their children. Until we address the gap between low incomes and the soaring cost of essentials, the debt crisis will continue to deepen.”
Urgent call for statutory enforcement regulation
As part of lobbying for greater control of debt collection by enforcement agents, CAP has just joined with the Taking Control Coalition to ask for the immediate introduction of a statutory regulator for the enforcement sector.
In a recent letter supported by CAP and addressed to the Prime Minister, the coalition warns that the current voluntary oversight of enforcement agents needs reviewing. Recent data from the Enforcement Conduct Board (ECB) revealed that in the first half of last year alone, there were 3.7 million enforcement cases, some sadly involving harmful practices such as clamping vehicles with disabled badges and the use of intimidating behaviour.
The letter highlights an unfortunate loophole: of ten enforcement agents recently dismissed for misconduct, only two had their certificates removed by the court, meaning the majority are likely still working elsewhere in the sector.
Stewart McCulloch continues:
“Overly forceful enforcement activity may push people further into debt and despair. It is unacceptable that agents dismissed for misconduct can simply move to a different firm and continue targeting vulnerable families. We have been working with the enforcement industry to develop guidelines and practices that work for everyone. These need now to have the backing of legislation.
“We are urging the Government to commit to statutory regulation. With 40% of enforcement cases linked to Council Tax debt, the modernisation of the enforcement sector must happen alongside wider reforms offering support rather than enforcement. We need a system that treats people with dignity and ensures that those in debt are protected from intimidation and unlawful practice.”
CAP’s call to action
As the new parliamentary session begins, Christians Against Poverty is calling on the Government to:
- Review the adequacy of benefit levels to ensure they cover the cost of essentials, via the widely supported ‘Essentials Guarantee’.
- Legislate for a statutory enforcement agent regulator to provide the Enforcement Conduct Board with the teeth it needs to protect the public.
- Modernise debt collection practices across central and local government to focus on affordability and support rather than enforcement.
ENDS
