The event is to be held on Tuesday 29 June in the Commonwealth Parliamentary Association, Westminster Hall, Houses of Parliament. For more information contact Beatrice Orchard on 020 7091 7654
ePolitix.com speaks to Steven Law, president of R3 the insolvency trade body about its forthcoming MP briefing and the issue of insolvency.
R3, the insolvency trade body, is holding a lunchtime briefing for MPs and researchers, entitled: ‘How is debt affecting your constituency?' What will this involve?
Research shows that 90 per cent of MPs in the previous Parliament were asked for help by constituents in financial trouble. It's clear that MPs can be a first port of call for distressed individuals, so we believe it's crucial that they have the information they need to support constituents in financial distress.
R3's event is an excellent opportunity for MPs to learn about debt and insolvency - with top tips for helping constituents, key facts about the main debt and insolvency options open to individuals, and a chance to meet local debt and insolvency experts. The interactive event will enable you to find out about insolvency in your own constituency and how it compares to the national average, and to other nearby constituencies. Chaired by Paul Lewis (BBC Radio 4's Moneybox), the event will take a look at how local experiences relate to national debt and insolvency trends, and our cross-party panel of MPs will share their experiences of helping constituents with financial troubles.
Do you find a lot of MPs are unaware of R3 and the support you are able to provide them when helping constituents?
We appreciate that MPs probably don't think immediately of R3, or insolvency practitioners, when they are supporting constituents in financial distress. But we'd like them to know we're here to help! Insolvency practitioners are highly qualified experts in debt and insolvency. On a daily basis, they work with businesses and individuals in financial trouble, spending around a quarter of their time on turnaround and preventing insolvency. As the leading trade association for the profession - representing 97 per cent of insolvency practitioners - R3 is well placed to provide accessible information, explanations and advice on debt and insolvency-related issues.
Why is it important for R3 to work alongside individuals and MPs facing debt and insolvency?
Personal debt and insolvency have dramatically increased in recent years and the number of personal insolvencies per constituency has grown significantly. In many cases individuals seek out their local MP for support and advice, and it is crucial that MPs are armed with the facts they need to help constituents who come to them for guidance - which is where we can step in.
As this is such an important issue, impacting on people's lives across the UK, I think we all have a role to play in ensuring that we mitigate the effects of debt and insolvency, and encourage people in financial distress to seek advice early!
Often individuals are daunted by debt and insolvency, which can seem frightening and unfamiliar. All too often people bury their head in the sand and ignore their mounting debts, which can make things worse as it can severely limit the solutions available to them. The central message for MPs to get across to those in financial difficulty is to seek advice early and to ensure they are advised by a qualified professional. There is an appropriate solution available to anyone struggling with their finances – the important thing is to encourage people not to suffer in silence.
What resources does R3 provide to MPs to allow them to assist their constituents concerning issues of debt and insolvency?
R3 is always on hand to offer support and guidance to MPs. As a first step, we have produced a guide for MPs on debt and insolvency, for their use when assisting constituents in financial trouble. It provides a clear and concise breakdown of the different insolvency procedures available, along with top tips and useful contacts.
As highly qualified professionals, our members are experts in personal and business insolvency. We are happy to put MPs in contact with insolvency experts from their region to offer accessible explanations of the problems that they may face in their constituency, and the best ways to advise individuals in financial difficulty.
R3 also acts as secretariat to the all-party parliamentary group on personal debt, business recovery and insolvency chaired by Natascha Engel MP. We always welcome new members to the group, which acts as a forum for MPs to discuss the cases they are seeing in their constituency and receive professional support and solutions.
Ninety per cent of MPs were contacted by constituents about financial concerns during the last Parliament, do you see this number increasing?
There is no doubt that debt and insolvency have been very important concerns during the recession, and worryingly, trends from previous recessions indicate that insolvencies continue to rise after the official end of a recession. Research by R3 earlier this year revealed that around a million individuals in England and Wales are struggling with their debts without seeking help.
Although these individuals are not captured by official insolvency figures, they are experiencing varying degrees of financial distress, and may look to their local MP for support. A very high proportion of MPs in the previous Parliament were faced with constituents in financial distress and we expect this to remain at a similar level over the course of the next Parliament, as the recession's aftermath continues to take its toll.
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