Commons Sense

House of Commons · Ministers' Questions

Personal Credit: Self-employed People

Tuesday 22 June 2021 · 2 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 2 Not answered 0

Key points

  • Toby Perkins asked about the assessment of personal credit availability trends for self-employed people.
  • The Minister responded with details of government support for the self-employed, including the self-employed income support scheme.
  • Perkins noted that self-employed individuals who relied on government support faced difficulties in obtaining credit afterward.

Topics (select to filter)

Questions & Answers

Q1 Toby Perkins Lab Chesterfield
Employment Business & Trade Benefits & Welfare
Context

No specific background context provided in the exchange.

Question

What assessment he has made of recent trends in personal credit availability for self-employed people?

Answer from John Glen

The Government have put together an unprecedented package of support for the self-employed, including the self-employed income support scheme, the temporary £20 per week increase in the universal credit standard allowance, and temporarily suspending the minimum income floor. The self-employed are also able to access the restart grant, the recovery loan scheme and business rates relief.

Partly answered

Not addressed: The assessment of recent trends in personal credit availability for the self-employed was not provided.

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Q2 Toby Perkins Lab Chesterfield
Employment Business & Trade
Context

The questioner describes instances where self-employed people who have received support from government schemes find it difficult to obtain credit afterwards.

Question

I am grateful to the Minister for that answer. However, my experience with some self-employed people in my constituency is that, having been self-employed for several years and accepted support from the self-employed scheme, if they then try to get credit, they are told that because they were on that scheme they are no longer eligible for credit, even though there is no reason to suspect that they will not be able to carry on being a guitar teacher, or whatever it is that they do, after the crisis is over. What can he say to the banks to ensure that they take a sensible approach to these people, who have perfectly sustainable businesses that have been suspended temporarily because of the Government's restrictions but are just as good a credit risk as they were three or four years ago?

Answer from John Glen

The hon. Gentleman makes a very sensible and worthwhile point on this matter. We are looking closely at the Financial Conduct Authority's “Financial Lives” survey, which indicates the degree of liquidity that exists. I work closely with the lenders on affordability assessments for the self-employed. I am happy to commit to continue to keep this matter under review and to receive further representations from him.

Partly answered

Not addressed: The Minister did not provide specific commitments or actions to address the issue of banks denying credit to previously supported self-employed individuals.

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