Andrew Gwynne MP has welcomed Ed Miliband’s announcement the next Labour Government will raise millions of pounds through a levy on the profits of payday lenders – money which will be used to double the public funds available for low cost alternatives such as credit unions.
The Labour leader showed how the latest proposals are part of One Nation Labour’s plan to tackle the worst cost of living crisis since 1870. He also praised the work done by Labour campaigners across the country in helping families deal with soaring personal debt.
The measures Labour has announced today come in addition to previous policy commitments on capping the cost of credit and giving local authorities new powers to limit the spread of payday lending shops in town centres.
Andrew Gwynne MP said:
“Across the country, campaigners are working to address the damage payday lending debt is doing to the finances of millions of families who are struggling to make ends meet.
“I am delighted that Ed Miliband has announced concrete plans to tackle loan sharks, tipping the balance in favour of credit unions.”
Ed Miliband MP said:
“The cost of living crisis afflicting millions of Britain’s families is so bad that it is creating a personal debt crisis too.
“The prices families have to pay keep on rising faster and faster than the wages they are paid. And, as a result, the market in payday lending has doubled in just four years. Almost a third of the payday loans taken out in Britain at the moment are to cover the cost of people’s gas and electricity bills.
“We would cap the cost of credit, halt the spread of payday lenders on our high streets and force them to fund the credit unions that can offer a real alternative for people in desperate need.”