Context
Tens of thousands of people are adversely affected by the loan charge scandal, suffering financial harm and anxiety due to delays in addressing their issues.
Question
What steps have been taken to support people adversely affected by the loan charge? Tens of thousands of people continue to suffer because of the loan charge scandal. Successive Governments, both Labour and Conservative, have failed those people. They have dithered, delayed and ignored reviews, causing confusion and worsening financial harm and anxiety for so many people.
Answer from Dan Tomlinson
The Government introduced legislation in the Finance Act 2026 to provide a new settlement offer for those affected by the loan charge. The Government will write off the first £5,000 of liabilities. I agree that those who have been affected need to be able to move on with their lives. The Government put forward a generous settlement offer at the last Budget that went further than the proposals set out by the independent reviewer. It was a Government supported for 14 years by the hon. Gentleman who introduced the loan charge and did not reform it adequately.
Not addressed: The specific ask about resolution and closure is acknowledged but no new concrete steps or timeline is provided beyond agreeing that victims need to move on.
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