BLACKBURN MP Kate Hollern has warned of the 'devastating' effect of family debt on more than 5,000 children in her constituency.

She was speaking in a special debate in the House of Commons on Conservative MP Kelly Tolhurst's Private Members Bill to introduce a 'Breathing Space Scheme' for parents in financial difficulties.

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Her proposed legislation would give families a time of respite from creditors' actions to sort out their finances and introduce tighter rules for the pursuit of debts where children are affected,.

Mrs Hollern told Treasury Minister Simon Kirby: "I can see the devastating effects of debt simply from my constituency casework.

"Blackburn, unfortunately, has more than 5,000 children living in families with debt problems.

"I have seen cases where a relatively small debt of a couple of hundred pounds has escalated to well over £1,000 in a very short time through court costs and bailiff costs.

"I have seen sad cases where people have actually lost their homes.

"In addition to implementing this scheme and providing respite for families suffering from debt problems, the Government must do more to offer security for people, both in and out of work, who suffer from poverty.

"Families on low incomes need far more certainty.

"Debt stigmatises and isolates families and can reduce young people’s chances of developing into confident human beings who can contribute.

"I have worked with many families whose children’s confidence has gone because the family has ended up in debt, often through no fault of their own.

"If someone suddenly loses their job or is taken ill, a happy family that has had a secure life for 10 years can suddenly be faced with the devastating need to deal not only with the illness that has hit the family but with the impact of losing their income.

"Often, those families just do not know where to turn. It is important they have support and breathing space to help them try to get their lives back on track.

"I back the scheme but I do not believe it goes far enough."

Mr Kirby said: "We all share an interest in helping people who have fallen into serious debt.

"We have been exploring carefully a breathing space scheme to give people time to find a way to deal with their debts."