Cathy Jamieson MP, Labour’s Shadow Financial Secretary to the Treasury, said:
"Labour has repeatedly called for the introduction of a cap so we are glad that, despite initial opposition from the Government, action is finally being taken.
“However, we believe these changes will need to be regularly monitored to ensure they are effective. That is why we want to see a review by the end of 2015 – much earlier than is currently being recommended by the FCA.
“We also want to see more done to promote safer and more ethical forms of lending, and that is why a Labour Government would extend the levy on the profits of payday lenders and use the additional money raised to increase the level of Government funding for alternative credit providers such as credit unions.”