It was as recently as last year that George Osborne was arguing against a cap on payday loan charges. He told MPs on 6 March 2012:
I completely understand the concern about excessive and very high interest charges, which have been a problem for many years. I think it is better to tackle the specific abuses. The Government are conducting a review of the cost of credit to consumers, but by tackling very specific abuses such as the roll-over of loans and the use of continuous authority, we think we are getting to the really hard cases and abuses that we want to see ended. I have to say—this was certainly the view of the previous Government, too—that although it could be worth looking at, simply introducing a cap might have the effect of pushing a lot of people into a completely unregulated black economy. I am not sure that any of us would want to see that.
But a cap is precisely what the coalition has announced today, declaring that there is "growing evidence" in support of the move. Interviewed on the Today programme, George Osborne confirmed that the cap would apply not just to the usurious interest rates charged by Wonga and co but also to arrangement fees, penalty fees and rollovers. He also rather euphemistically acknowledged the role "individual MPs" had played in the decision, before (after some prompting from Evan Davis) eventually referencing Stella Creasy by name.
The Walthamstow MP, who has campaigned relentlessly on this issue for three years, is rightly declaring victory today. She said this morning: "Just two months ago this Government criticised Ed Miliband for wanting to reform broken markets, and now today we see them following Labour's lead on the need to act against legal loan-sharking...That the Government is today admitting it got it wrong in opposing these measures and is still playing catch up on how to combat these problems shows it is Labour who have the ideas and determination to tackle Britain's cost of living crisis."