Government`s debt management plan failing to meet expectations

9 April 2010

The Public Accounts Committee has said that the management of the Government`s strategy to help borrowers experiencing difficulties with their debts is "seriously deficient", the Telegraph reports.

The claim comes at a time when 10% of borrowers are struggling with their debts.

The Government launched its over-indebtedness strategy six years ago, in 2004. It was designed to offer more help to people who are struggling with their debts - and to reduce the number of people who fall behind with their debts.

Edward Leigh, the Chairman of the Public Accounts Committee, said: "The growing demand for debt advice is outstripping the department`s capacity to provide it. It must work with those in the public, private and third sectors who provide debt advice, to do all that they can to make good quality guidance available for those who need it."

However, the Committee did praise the Department for Business, Innovation and Skills` project to offer face-to-face debt advice to borrowers - saying that `people who had used the service had liked it, while it had also helped more people than planned, and for less than was budgeted.`

Tags: debt, debt management, government debt management, government, government debt advice, debt advice, Public Accounts Committee, over indebtedness, Department for Business Innovation and Skills, face to face debt advice

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