Financial Services Bill

If we are going to get the social fund to fill the gap, we are starting to talk about a significant commitment to additional Government spending. There are alternatives, but I am not sure that they will plug the gap if the people in the home credit market choose to withdraw. It is an expensive business to collect money door to door from consumers on low incomes who want flexibility. Many organisations would not want the reputational risk of working in that arena and charging high rates. I am not persuaded by the arguments of the hon. Member for Wolverhampton, South-West, although I understand where he is coming from. Members on both sides of the House would want a cheaper alternative to home credit, but we have yet to see evidence that one exists. If the home credit people withdrew from the market, some individuals would be picked up by credit unions, community development finance institutions and similar bodies, but many of them would go to loan sharks, and we know the personal costs that can result from their doing so. The credit market is difficult to get right, and there are real challenges in how we deal with high rates and marketing. We welcome the measures in the Bill, but new clause 14 is a sensible and proportionate solution to the problem of store cards so, with your agreement, Mr. Speaker, I should like to press it to a vote at the appropriate time.