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<p>In Q2 2016 household debt relative to income fell to 142%, down from its peak of
160 percent in Q1 2008. Unsecured debt as a proportion of household income was 39
per cent in Q2 2016, down from a peak of 44 percent in Q1 2007. The government recognises
that there is more to be done to help those in problem debt. The Money Advice Service
(MAS), an arms-length body of the Treasury coordinates the provision of publicly-funded
free to client debt advice. In 2015-2016 MAS had a £75m budget and in that financial
year made 300,000 money guidance sessions and 380,000 debt advice sessions available
to consumers<strong>. </strong>In October 2016 the government announced plans to bring
publicly-funded debt advice, money guidance, and pensions guidance together in a single
guidance body, responsible for providing impartial, free-to-client guidance and for
promoting financial capability.</p><p> </p><p>Additionally, we have created the independent
Financial Policy Committee within the Bank of England, to ensure emerging risks and
vulnerabilities across the financial system as a whole, including in relation to household
debt, are identified, monitored and effectively addressed.</p>
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