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Post COVID scheme

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WQ.197/2021

WRITTEN QUESTION TO THE CHIEF MINISTER BY DEPUTY M.R. HIGGINS OF ST. HELIER QUESTION SUBMITTED ON TUESDAY 4th MAY 2021 ANSWER TO BE TABLED ON TUESDAY 11th MAY 2021

Question

Will the Chief Minister advise whether he is considering legislating as a matter of urgency for a post-Covid debt respite scheme to help those suffering financially, similar to the English Breathing Space' scheme which gives legal protections to those in debt from their creditors for 60 days, with most interest and penalty charges frozen, and enforcement actions halted; if not, will he explain why not, and, if he is contemplating an alternative scheme, will he state what that scheme is and by when it will be introduced?

Answer

The Breathing Space' scheme forms part of the debt solutions that are available in the UK such as Debt Relief Orders and Individual Voluntary Agreements.

There are currently no plans to replicate this specific system in Jersey, but officers continue to monitor and review the UK debt respite schemes which can be read in full on the Debt solutions - Citizens Advice (UK site).

It should be noted that Jersey does utilise Debt Remission Orders (DRO) as provided for in the DEBT REMISSION (INDIVIDUALS) (JERSEY) LAW 2016. Once a DRO is granted, a 12 month moratorium' period is put in place when creditors cannot make further attempts to recover the debts, after the 12-month period the debts are effectively written off'.

The Government of Jersey continues to work alongside the Jersey Citizens Advice Bureau to assess whether additional financial support is needed to alleviate personal debt given the impact of the COVID-19 pandemic.