Increasing insolvencies but only 1 in 4 are finding support says Norman Lamb

12.00.00am GMT Fri 3rd Feb 2006

Answers to Parliamentary Questions tabled by Norman Lamb in his capacity as Lib Dem Shadow Trade and Industry Secretary, show that over the last two years only 26% of calls to the National Debtline were answered first time by an adviser.

At present, the projected number of helpline employees by January 2008 is 119. They would still only be able to answer 44% of calls currently received first time. With individual insolvencies rising, this level of recruitment is simply not sufficient.

This comes after figures published by the DTI today show a substantial rise in individual insolvencies of 57% compared to the same quarter last year.

Commenting, Norman Lamb said, "There is no doubt that the National Debtline, and other debt advisory lines offer great support to those who are struggling to cope with mounting debt issues."

"These figures clearly illustrate how few people manage to get advice quickly. With the number of individual insolvencies rising at a rate that far outstrips the National Debtline's recent recruitment drive, it is evident that not enough if being done to overcome the obstacles to obtaining this valuable advice.

Mr Lamb continued, "We must take a proactive approach to combating this trend. I would call on banks and other such lenders to show their commitment to responsible lending by contributing as little as 0.01% of their profits to increase the capacity of financial and debt counselling services."