The Treasury Committee is to take a broad look at the state of UK household balance sheets, including whether households are saving adequately in the current economic environment, as part of a new inquiry.

It will scrutinise problematic indebtedness, inter-generational issues, lifetime financial planning, and the effectiveness of the market in financing solutions and products to low income households.

The first evidence session of this inquiry will be on Tuesday 14 November with Ashwin Kumar ( Rowntree Foundation chief economist), Michael Johnson (Centre for Policy Studies research fellow), and Torsten Bell (Resolution Foundation).

Commenting on the launch of the inquiry, Treasury Committee chair Nicky Morgan said: "The UK's household saving rate has fallen in the last year. Fifteen per cent of adults are over-indebted. And there is £200bn worth of consumer credit in the UK.

“It is therefore timely for the Committee to launch an inquiry into household finances. Debt is a huge emotional burden for people. Unstable personal finances often emerge as problems raised by constituents, so we hope to take evidence for this inquiry from around the country.

“We will examine what policies could support households in achieving appropriate levels of saving, and the sustainability of the UK's household debt and consumer credit."

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