News & Views

Following the Chancellor's Mansion House speech there have been calls for the FCA to review its creditworthiness and affordability rules. In this blog, we argue these regulations are not the reason why fewer low income households have been able to access credit in recent years. Those calling for a watering down of consumer protections are ignoring the wider context of the cost-of-living crisis which has made consumer credit less affordable.

The stock of outstanding consumer credit is at an all-time high. But relative to gross household incomes the ratio is falling. In this blog we take a deep dive into the data, highlighting why aggregate measures are misleading, and reporting on the shocking severity of the consumer credit debt burden being experienced by low income households.

A new report from Fair4All Finance argues there has been a severe decline in the availability of credit for lower income households, and that we should consider "regulatory adjustments" to address it. In our response, we argue that there is little evidence of a 'credit vacuum' and that now is not the time to embolden high-cost lenders who are trying to roll back the regulatory clock.

April will see further pressure piled on households whose finances have been shattered in recent years. With the economy teetering on the brink of recession too, we need to both reduce prices and boost demand. A VAT cut, as many are calling for, could help.