Hm Treasury
Detail of outcome
The government received over 80 responses from a wide range of stakeholders. Respondents raised significant challenges and concerns, relating to both the design of the statutory debt repayment plan (SDRP) and the timing of its implementation. These are summarised in the consultation response document.
The government has reflected on this feedback and determined that it will not proceed to lay regulations implementing the SDRP this year. Instead, the government will base further decisions on the future of the SDRP on the outcomes of the governments review of the personal insolvency framework, led by the Insolvency Service. At this stage of the review, no decision on reform has been made. However, the government is mindful that any significant reforms to the personal insolvency framework may affect both the need for, and design of, a new debt solution based on full repayment of debts. The governments intent is to ensure that the overall framework for helping people in debt is coherent and well-considered.
Original consultation
Consultation description
The SDRP will be a new statutory debt solution focussed on repayment of debt, rather than debt relief, addressing a gap in the debt solution landscape. The SDRP will include a broad range of debts, including debts owed to the government and to creditors outside of financial services and will protect debtors from enforcement action, creditor contact, and interest, fees and charges on their debts while they repay them.
The government consulted on aspects of the SDRP in 2018/19, and published a response to that consultation in June 2019, setting out a basic blueprint for the scheme.
This consultation on the SDRP sets out the policy development that has taken place since 2019. It seeks stakeholder views on three broad areas:
- the draft regulations necessary to implement the SDRP
- questions on outstanding policy issues and operational considerations
- a consultation stage draft impact assessment
