New laws to tackle debt - Debt - News - Moneyfacts

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

New laws to tackle debt

New laws to tackle debt

Category: Debt

Updated: 16/10/2012
First Published: 16/10/2012

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

New laws that will enable Government departments to share information on people and businesses that owe them money will soon be introduced.

In February, a review published by the Cabinet Office's Fraud, Error and Debt taskforce found that over £20 billion was owed to Government and that more than £7 billion was lost through unpaid debt being written off each year.

This is equivalent to over £400 per working household every year.

The Government said the new legislation will create a single legal process for all the appropriate information to be shared in each case.

"For years Government has done all too little to collect the huge amounts of debt which it's owed. That's just totally unfair to the hard-working honest people who are paying their taxes and doing the right thing," said Francis Maude, Minister for the Cabinet Office.

"Because many debtors owe money to multiple departments, I am working closely with other ministers to find ways of aggregating these debts so we recover them in a single action - that would be simpler for Government and the debtor."

What next?

Read the latest news

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Brits owe more but pay less in interest

New figures have revealed that, while Brits tend to have a high level of debt, they’re paying less in interest than at any time since 2003. The question is, will it last, and if not, can Brits’ credit commitments be comfortably maintained?

Millions are borrowing to buy essentials

Many of us use credit from time to time, and when used wisely, it can be a valuable way to help make the most of your money. However, over-reliance on credit can be dangerous, particularly when people are forced to borrow to buy essentials.

Millennials losing sleep over debt

Money worries can keep people up at any age, but new research has found that a staggering one in four adults under 34 have lost sleep over financial troubles. Many are feeling pressure not just from their bank account, but also their loved ones.
 
Close