Over-indebtedness strategy is ‘a complete failure’

The government’s over-indebtedness strategy – launched in 2004 – has not served its purpose, an industry expert has said.

Edward Leigh MP, Chairman of the Committee of Public Accounts, was speaking as the group published its 31st report of this session, which focused on the experience of the government’s scheme to date.

The project was created almost seven years ago by the Department for Business, Innovation and Skills and shares responsibility for its coordination with the Department for Work and Pensions and the Ministry of Justice.

It aimed to improve support for those struggling with debt and to reduce the number of those in financial disarray.

Mr Leigh, however, said its implementation has been “a complete failure” as the government created a “myriad” of interventions and the arrangements for coordinating them “have not worked” and “no one has been in charge”.

Rising energy bill costs could also be adding to people’s insolvency worries, research provided by uSwitch.com recently suggested.

Read what ClearDebt have recently blogged about government funded debt advice.

By Joe Shervin