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<p>Household debt as a proportion of income is down significantly from its pre-crisis
peak, from 160% in Q1 2008 to 140% in Q2 2018. However, despite this, the government
recognises the importance of preventing people from falling into debt, and supporting
individuals if they do.</p><p>To prevent individuals getting into problem debt, the
government is putting in measures to improve living standards, and making it easier
to access help with financial matters. In particular, the National Living Wage has
increased the earnings of the lowest paid full-time workers by over £2000 since 2016,
and will rise up a further 4.9% in April 2019 - a £690 rise for a full-time worker.</p><p>
</p><p>The government is also setting up a new Single Financial Guidance Body, which
will provide people with a single point of contact for help with all financial matters,
and have a statutory responsibility to improve the public’s financial capability.</p><p>
</p><p>However, the government recognises that, despite this action, some people can
fall into problem debt. That is why the government is implementing a breathing space
scheme – a sixty day period of protection for people in problem debt, to engage with
debt advice and find a sustainable, long-lasting plan to solve their debt problems.</p>
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