Opened the debate
Ms Stella Creasy started by highlighting the stigma around discussing debt in Britain and noted that debt is a national issue, not limited to her constituency. She reported that nearly 55,000 people in Walthamstow are financially vulnerable, representing 58% of her local population and significantly above the national average. Creasy cited studies indicating that millions of low-income families were struggling with essentials and facing debt problems. The Registry Trust's data was used to illustrate how debt affects various communities at different rates. Creasy mentioned the £291 million in credit card debt written off by lenders at the end of last year, emphasising the severity of the issue. She also highlighted that millions of households had taken out loans for food and housing, with significant arrears on essential bills leading to potential evictions or bailiff visits. The MP discussed how high inflation since 2021 has exacerbated financial difficulties due to increased costs in areas such as food and energy, coupled with rising private rents. She criticised the Government's failure to address these issues effectively and noted that illegal lenders were exploiting vulnerable households. Creasy also pointed out the inadequacy of current debt advice services, highlighting the need for better funding and earlier intervention. Creasy called on the Government to consider regulating buy now, pay later companies and suggested implementing a windfall tax on them to fund vital debt advice services. She argued that these companies should contribute towards addressing the financial issues they cause by making excessive profits from consumer debts. Creasy further requested regulations against commercial companies exploiting people in debt, advocating for measures to ensure lenders are not contributing to financial exclusion.