Twigg seeks help for families in debt
HALTON MP Derek Twigg has backed calls for a scheme to protect families from their lives being ravaged by debt.
Mr Twigg said a ‘Breathing Space’ initiative would help thousands to stabilise their finances after Bank Of England data showed unsecured household debt rising at its fastest rate since the financial crisis.
The Labour MP said debt often strikes when during sudden changes in circumstances such as job loss or ill health, adding that aggressive action from creditors and pressure to repay at an unaffordable rate can lead families to cut back on everyday essentials such as food, to take out other, expensive loans or fall further behind on essential bills.
The rise in personal borrowing has led to mounting concern that households which fall into debt need safer ways to manage financial difficulties.
In Halton alone, an estimated 3,676 families with 6,363 children are living with problem debt.
Analysis from The Children’s Society said that children in low-income families with multiple debts are more likely to suffer from mental health problems than equivalent families with fewer debts.
Mr Twigg has joined calls in Parliament to introduce a ‘Breathing Space’ scheme that would offer anyone seeking debt advice a 12-month legal protection from mounting interest, charges and enforcement action.
It would build on protections offered under the Debt Arrangement Scheme in Scotland, which has made sure that families sticking to an affordable repayment plan agreed with their creditors are not harried or hassled for the duration of that plan.
Mr Twigg, whose Halton constituency encompasses Widnes, most of Runcorn and Hale, said: “It can’t be right that children’s mental health and happiness is suffering as a result of creditors unfairly escalating people’s debt problems.
“Families in problem debt need time and space to get back on their feet.
“By providing a period free from additional interest, charges and enforcement action, a new Breathing Space scheme would help families recover their financial situation and put in place a plan to affordably repay their debts.
“I’m pleased that the Breathing Space proposal has widespread crossparty support, including from the Work And Pensions Select Committee and the APPG (all-party parliamentary group) On Debt And Personal Finance.
“The Government now needs to act by putting a comprehensive Breathing Space scheme in place.” ●