Government debt-help initiatives criticised

Posted in 'Dealing with Debt' by Richard Catlin

14 April 2010

The government’s attempts to provide extra help to people struggling with debts have been branded a "complete failure" by the Public Accounts Committee.

The Public Accounts Committee is appointed by the House of Commons to ensure that government spending offers value for money and is both efficient and effective.

It looked at the 51 projects that have been introduced in the past six years.

It found that despite spending of around £600 million on the overall strategy for dealing with debt, most schemes were uncoordinated and poorly managed and that there had been no reporting on the overall progress since 2007. Only one scheme – where consumers are able to get face-to-face help through the Citizens Advice Bureau – was singled out for praise.

The Committee also reported that 11% of adults are currently struggling to manage personal debt.

At the same time, the Consumer Credit Counselling Service, a free debt advice charity, revealed that it received almost 1,700 requests for help in 2009 from expats living overseas with debts here in the UK.

This significant deterioration in expats financial circumstances has been bought about by a combination of factors including the weak pound and the increased cost of living abroad. It is now thought that many expats are considering a return to the UK.

For any expat who chooses to come back to the UK, one of the first things on the to-do list should be to check what their credit report looks like. Putting omissions right, such as the crucial listing on the electoral roll at their new address, and ensuring that all accounts are reported as expected, will make a big difference to the chances of making successful applications for credit, rented accommodation, and for employment in the UK.

Our Unlimited Access Service provides access to data from all three credit reference agencies in the same easy-to-understand format and is the easiest way of checking everything is as it should be.

Remember, if you’ve got debt worries of your own, you can get free, impartial advice on checkmyfile by visiting our Debt Advice Centre.