Household finances: income, saving and debt inquiry

The government welcomes the report and agrees with some conclusions, but declines to adopt several recommendations, including abolition of the Lifetime ISA and the Creditworthiness Assessment Bill, giving reasons for each.

• On household debt, the government "agrees with the Committee’s conclusion" that debt must be considered at both aggregate and distributional level, and on credit unions it "agrees with the Committee’s recommendation that a strategic, joined-up approach is needed".
• On the Creditworthiness Assessment Bill, the government shares its objective but says the approach "could be counterproductive", and points to the Rent Recognition Challenge instead.
• On the Lifetime ISA, the government "acknowledges the Committee’s view" but notes that no evidence was taken from any providers, and says it "remains committed to supporting savers"; it does not state that it will abolish the product.
• On breathing space, the government "notes" the Committee's suggestions on length and says it intends "to publish a consultation on the scheme’s design shortly". On auto-enrolment, it aims to implement changes in the "mid-2020s, subject to finding ways to make the changes affordable".