Labour ‘ would end low paid debt trap’

Labour would end the “national scandal” of the low paid debt trap, the shadow chancellor has announced.

John McDonnell said his party would seek to put a stop to the “miser y” of permanent debt by placing a cap on the total amount that can be paid in overdraft fees or interest payments.

Labour estimates that the policy could help 2.7 million people who it says are stuck with permanent overdrafts, saving them the equivalent of £ 86 each per year.

Mr McDonnell said: “Too many families are having to rely on borrowing just to get to the end of the month, and are facing huge costs from our highstreet banks.

“The national scandal of the low paid debt trap has to end. More needs to be done to level the playing field and bring greater fairness in consumer finance.”