I'm leading a new move in Parliament against rip-off money lenders
My Private Members Bill will regulate 'payday lenders'
Monday June 17th - Today I'm announcing that I'm putting forward a Bill in Parliament to regulate rip-off payday money lenders. I've got the chance to introduce a Bill of my own choice after I came second in this year's ballot for Private Member's Bills.
My statement for the local press is below:
"Payday money lenders are making millions from extortionate loans to some of the most vulnerable in Sheffield and across the country. In hard times, it's no wonder that people who are struggling will turn to them for help. But the massive interest rates, rip-off charges and misleading advertising of payday lenders are often just pushing people further into debt. So in Parliament I'm putting forward a Bill to properly regulate these lenders and put a stop to their worst rip-off practices which badly exploit those who can afford it least."
"Getting a chance to put forward a Private Members Bill is something most MPs are never able to do. It's a massive opportunity to shine a spotlight on the unacceptable practices of this sector, and to do something to stop it. I'll also be campaigning in Sheffield to raise awareness about the dangers of payday money lenders and promote sources of more responsible credit like Sheffield Credit Union.
"I'm pleased that the Bill has attracted cross-party support and I'll be building on the work of my colleague Stella Creasy who has done so much to highlight the damage that payday lenders are doing in our communities."
My 'High Cost Credit Bill' will include provisions to control advertising and marketing of high cost credit products, and to ensure clearer information is provided to borrowers on the cost of loans and on additional charges levied if they fail to repay. It will include new measures to ensure that loans are affordable by introducing lending limits and capping excessive charges. It will protect borrowers having problems with repayment by requiring lenders to refer them to free independent debt advice, freeze charges and ensure that proper repayment plans are put in place.
I've prepared the Bill in consultation with Which?, StepChange, Citizens Advice, Centre for Responsible Credit and also from Sheffield CAB Debt Support Unit.
Steve Wilcox from the Sheffield Debt Support Unit says "We have been seeing increasing numbers of clients with payday loan debts. In most cases, the clients took out the loan because they couldn't afford to make ends meet in the long term, not to meet a short term cashflow problem - in most cases, the client couldn't afford the repayment and payday loans have driven them deeper into debt. Payday lenders don't need to ensure that the loan is affordable because they take the repayment out of the borrower's bank account, under a 'future-dated payment authority', before the borrower has paid other essentials - so it's often the rent or the council tax that ends up not getting paid instead. Banks should not make the payment to the payday lender if the customer asks them not to."
The Bill will receive its first reading on Wednesday 19th June and second reading on Friday 12th July. I'll keep you updated about it's progress so watch this space. And if you have been affected by payday money lenders please get in touch. To win the argument to regulate this growing industry we need to make the voices of the people they have affected heard. Please share your stories and experiences with me and if you have any comments or questions about the Bill then please get in touch. You can download a copy of my press release here
Realising the potential of community renewable energy - how can more local schemes in Sheffield be set up?
On Friday June 28th I'm hosting a half-day workshop to look at some of the difficulties around developing community renewable energy schemes and how more schemes could be developed in Sheffield. Find out more about the workshop here and if you're interested in this area please get in touch as I'd love to hear your views.
My Private Members Bill on Payday lenders, Scottish Independence, Motor Neurone Disease and Creating a Fair Society - some of my week ahead
Monday 17th June - My week started yesterday as I travelled up to Scotland in preparation for a Business Innovation and Skills Select Committee Inquiry on Scottish Independence. Today in Glasgow and tomorrow in Edinburgh we've five evidence sessions in which we're questioning 17 witnesses on the potential impact of independence on business, higher education, research and the postal service - all the areas covered by our Committee that are potentially affected. I'll be heading back to London on Tuesday afternoon in time for a meeting of the All-Party Universities Group, of which I'm Secretary, on A-level reform. Then I'm catching up with the Vice-Chancellors of our two universities who are in Westminster to catch up with South Yorkshire MPs.
Wednesday's a big day, as it will be the First Reading for my Private Members Bill. But it's only the formal start of the process; with the Bill being presented to the House of Commons without debate. I was really fortunate to have come second in the ballot for a Private Members Bill, which guarantees me time to bring forward legislation. It's a special opportunity that many MPs never have, so I thought long and hard about the topic for my Bill. I wanted to do something that was rooted in my values and that would make a real difference in Sheffield. So I've decided to put forward legislation to regulate payday lenders.
Payday money lenders are making millions from extortionate loans to some of the most vulnerable in Sheffield and across the country. In hard times, it's no wonder that people who are struggling will turn to them for help. But the massive interest rates, rip-off charges and misleading advertising of payday lenders are often just pushing people further into debt. My 'High Cost Credit Bill' will seek to control advertising of high cost credit products, to ensure clearer information is provided to borrowers on the cost of loans and will include new measures to ensure that loans are affordable by introducing lending limits and capping excessive charges. It will also protect borrowers having problems with repayment by requiring lenders to refer them to free independent debt advice, freeze charges and ensure that proper repayment plans are put in place. I'm pleased to have secured cross-party support for the Bill which will be fully debated at Second Reading on 12 July.
Back in Sheffield on Friday I'm speaking before the showing of a powerful new documentary film at the Showroom about Motor Neurone Disease, 'I Am Breathing'. I'm Vice-Chair of the All-Party Group on MND and pleased to support the South Yorkshire Branch of the MND Association to mark Global Awareness Day for MND. Then I'm off to Sheffield College to meet the newly-elected Executive Committee of the Students' Union and discuss the issues facing their students. Later, I'll be meeting Professor Cathy Nutbrown, author of the Nutbrown Review on qualifications for early years and childcare staff, and then with the Public and Commercial Services (PCS) Union over the relocation of Department of Work and Pensions IT jobs away from Sheffield.
On Saturday morning I'll be speaking at the Annual Meeting of my Constituency Labour Party, where we'll be joined by Lord Maurice Glasman and my Parliamentary colleague Stella Creasy. In the afternoon, I'll be supporting the Broomhill Festival - opening a discussion on the question "Can Politicians Create a Fair Society?". It's at 2.30pm at the Beacon Methodist Church and everyone's welcome to come along and join in!
Protect Sheffield's name and reputation for high quality - my letter to Business Secretary Vince Cable
Monday 20th May - I have today written to Business Secretary Vince Cable urging him to retain Sheffield as a protected word. The Cutlers Company currently grants permission to use the word "Sheffield" in company names but the Department for Business is consulting on whether Sheffield's name should be taken off the protected word list as part of their 'Red Tape Challenge'. You can read my letter to Vince Cable here.
Granting the use of Sheffield for company names is an important quality control process that protects Sheffield's reputation for high quality products and services. It is misguided to see it as 'red tape' and I'm concerned that scrapping this protection could lead to companies with no links to Sheffield using our city's name. The Business Secretary needs to listen to the views of Sheffield business and ensure that our city's name and reputation for high quality is protected.
If Ministers want to help businesses in Sheffield they should be investing to create new jobs and growth, instead of looking to undermine their reputation.
You can find details of the consultation here, and the Star had an excellent article on this issue last week.
International Day against Homophobia and Transphobia - my message of support
Friday 17th May - Today is the International Day against Homophobia and Transphobia. As they do every year the brilliant team at Sheffield's Centre for HIV and Sexual Health are inviting you to join them this evening in the Peace Gardens to 'make some noise' to demonstrate your support for lesbian, gay bisexual and transgender people in Sheffield and across the world, and to make a stand against homophobia and transphobia. The IDAHO rally is between 5.30-6pm (assemble from 5.15pm) and you can find all of the details here. Museums Sheffield are also celebrating IDAHO by putting on a fantastic range of performances, film and music tonight which begin after the Peace Gardens rally. You can find all of the details on their website here
Unfortunately I can't attend tonight's events but I've sent the following IDAHO message of support to the organisers:
"I'm sorry I can't be with you today, as I have in previous years, but I'm delighted that Sheffield is proudly and loudly marking the International Day against Homophobia and Transphobia. Today's rally couldn't come at a better moment as we'll see another step towards a more equal society on Monday when the Same-Sex marriage Bill returns to the House of Commons. I will be voting to back the Bill. People who love each other and want to make a long term commitment to each other should be able to get married, whatever their sexuality.
"As well as challenging homophobia whenever and wherever we encounter it at home, we can't forget that today is the International Day against Homophobia. I'm proud Sheffield is a city of sanctuary that welcomes people from around the world who have fled persecution. There are people living in our city who have fled their country because it is a criminal offence to be gay. Until the day comes when all LGBT men and women around the world can live their lives without fear and the threat of persecution we need to keep campaigning, and I will continue to speak out, against homophobia and transphobia."
Museums Sheffield are also celebrating IDAHO by putting on a fantastic range of performances, film and music tonight which begin after the Peace Gardens rally. You can find all of the details on their website here
