DEMAND AN END TO POVERTY THIS GENERAL ELECTION
TAKE ACTION
Housing

John Bird’s Creditworthiness Assessment Bill is going to the House of Commons

The proposed legislation which aims to make rental payments a compulsory part of a credit score cleared its report stage and third reading in the Lords

Big Issue founder John Bird’s push to make credit more affordable for some of the poorest in society has reached a key milestone as it moves through parliament.

The Creditworthiness Assessment Bill, the proposed legislation launched last year, proceeded through the House of Lords yesterday and will now head to the House of Commons.

There were no amendments made to the bill during last week’s report stage or the processional third reading in the Lords yesterday.

The proposed legislation, which aims to provide fairer access to more affordable credit for people living in poverty, had a first reading on June 28 last year before progressing to a second reading on November 24.

A committee stage hearing on May 11 this year saw no amendments passed before the bill, which has received support cross-party support from Nicky Morgan MP and Green Party peer Baroness Jones among others, completed its run in the Lords.

If approved, the bill will open up fairer access to more affordable credit to a wider pool of responsible borrowers and prevent people from falling into the high-cost credit poverty trap.

The Big Issue’s rental exchange scheme, run in collaboration with credit reference agency Experian, helps to build up a positive credit history for tenants based on this idea – and has already seen 1.4 million social housing tenants engage with the initiative.

This will mean fairer access to more affordable credit, for things as simple – but as vital – as white goods, so borrowers won’t be forced towards rapacious lenders.

By bolstering the financial resilience of Britain’s lower-income households, it will also help to puncture the £490 annual poverty premium where the poor pay more.

At present, the rental payments of the UK’s 11 million renters aren’t recorded or recognised in the same way mortgage payments are. This means some of the country’s poorest people pay the most for credit, including repayment contracts for white goods, utilities and mobile phones.

Support the Big Issue

For over 30 years, the Big Issue has been committed to ending poverty in the UK. In 2024, our work is needed more than ever. Find out how you can support the Big Issue today.
Vendor martin Hawes

Recommended for you

View all
'All my stuff is ruined now': Renter speaks out after home flooded with faeces and sewage
Privste renter Decoda Smith
RENTING

'All my stuff is ruined now': Renter speaks out after home flooded with faeces and sewage

Council charges Grenfell residents cleaning fee for memorial to victims: 'Who would think this was fair?'
Grenfell memorial
Grenfell

Council charges Grenfell residents cleaning fee for memorial to victims: 'Who would think this was fair?'

Labour manifesto's 'vague' plans on homelessness unpicked: 'Next to nothing for those on the margins'
Labour leader Keir Starmer
General election 2024

Labour manifesto's 'vague' plans on homelessness unpicked: 'Next to nothing for those on the margins'

Seven years after Grenfell Tower fire: Residents fear they'll die before seeing justice
Grenfell

Seven years after Grenfell Tower fire: Residents fear they'll die before seeing justice

Most Popular

Read All
Renters pay their landlords' buy-to-let mortgages, so they should get a share of the profits
Renters: A mortgage lender's window advertising buy-to-let products
1.

Renters pay their landlords' buy-to-let mortgages, so they should get a share of the profits

Exclusive: Disabled people are 'set up to fail' by the DWP in target-driven disability benefits system, whistleblowers reveal
Pound coins on a piece of paper with disability living allowancve
2.

Exclusive: Disabled people are 'set up to fail' by the DWP in target-driven disability benefits system, whistleblowers reveal

Cost of living payment 2024: Where to get help now the scheme is over
next dwp cost of living payment 2023
3.

Cost of living payment 2024: Where to get help now the scheme is over

Strike dates 2023: From train drivers to NHS doctors, here are the dates to know
4.

Strike dates 2023: From train drivers to NHS doctors, here are the dates to know