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Citizens Advice responds to Government plans to make changes to Debt Relief Orders

23 February 2010

Sue Edwards, Head of Consumer Policy said:

“We welcome the forthcoming Government consultation on Debt Relief Orders and the proposals to ensure that people with small pensions will now qualify. We have been very concerned in the past that people who fulfil most of the criteria for a DRO were having their applications rejected because of very small pension funds.

“In a new survey, we found that 96.3% of the people we spoke to were excluded from the DRO only because of their pension, and 78% of these people had a pension fund of less than £5,000.

“We are, however, very concerned about the announcement that there will be a 25% increase in the amount people must pay as a deposit to go bankrupt, from £360 to £450. We already see many CAB clients unable to afford to go bankrupt even though it is the best option for them. This increase will only exclude more people.

“There's no one-size-fits-all solution to debt problems, it will always depend on individual circumstances. If you're in debt you can visit your local CAB for independent, impartial advice on all your options before deciding which remedy is the right one for you."

Notes to editors

  1. The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more information in England and Wales see citizensadvice.org.uk
  2. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality. For online advice and information see adviceguide.org.uk
  3. Citizens Advice Bureaux in England and Wales advised 2.1 million clients on 7.1 million problems from April 2010 to March 2011. For full 2010/2011 service statistics see: citizensadvice.org.uk/press_statistics
  4. Out of 22 national charities, the Citizens Advice service is ranked by the general public as being the most helpful, approachable, professional, informative, effective / cost effective, reputable and accountable. (nfpSynergy’s Brand Attributes survey, May 2010).
  5. Most Citizens Advice service staff are trained volunteers, working at around 3,300 service outlets across England and Wales.