People with problem debt could be given a six-week breathing space, the government has confirmed.It follows pressure from rebels in the House of Lords, who had threatened to vote down the Financial Guidance and Claims Bill later on Tuesday.

They wanted the bill amended to include the breathing space idea.But the Treasury has now confirmed that help for those in debt will now be the subject of a consultation, and will become law by 2019.The concept had been promised in the Conservative party manifesto, and was mentioned in the Queen’s Speech.

The news was welcomed by the debt charity StepChange, although it said debtors needed protection beyond the six week grace period.

However, the rebels – led by former pensions minister Ros Altmann – still want a ban on pensions cold-calling to be included in the bill.The Department for Work and Pensions announced in August that a ban would happen, but as yet there is no date.It told the BBC that a bill would be brought forward “when time allows”.

Source: Debtors to be given ‘breathing space’, government confirms – BBC News