- Monday, 1 March 2010Extra debt help may soon be on the way for those experiencing financial difficulty, it has been reported.
Business Minister Ian Lucas has announced that the government plans to make more people eligible to apply for Debt Relief Orders (DRO), providing a lower cost option for people to avoid bankruptcy.
Consumers with relatively small "pension pots" would be eligible for a DRO under the proposed changes.
Commenting on the proposal, Mr Lucas said: "Debt Relief Orders help people who would otherwise be trapped in poverty to get back on their feet.
"Following representations from independent money advisers, I'm proposing a common sense change to ensure that vulnerable people with a very small pension pot are treated fairly."
Sue Edwards, head of consumer policy at Citizens Advice, told the BBC of the charity's concern towards the number of people who are meeting most of the criteria for a DRO but are being rejected because of small pension funds.
Ms Edwards referred to a recent survey that found 96.3 per cent of people were excluded from the DRO because of their pension, with 78 per cent having a pension fund under £5,000.
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