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Credit insurance boost as Government acts

The Government has doubled the upper limit for cover provided by its credit insurance top up scheme to £2 million.

The department for Business, Information and Skills announced the changes this week following a meeting with the Construction Products Association.

Other changes include reducing the price of the scheme from 2 per cent to 1 per cent, and removing the £20,000 lower limit.

Companies which had credit insurance completely withdrawn, and then partially reinstated, are eligible for top-up against the reinstated amount. 

The changes will take effect immediately.

CPA director of external affairs Simon Storer said: “We are very pleased the Government has responded both positively and speedily to our concerns and suggestions for its top-up scheme.

“The survey we carried out to gauge the views of the construction products industry, and the meetings we have had with Government, have quite clearly played a key role in helping them improve the scheme.

“These changes, which are being brought in with immediate effect, will make the scheme more accessible to more companies.”

The association is putting together a larger focus group to meet with BIS to discuss further improvements to the scheme.

Mr Storer added: “We will continue to work with the department to investigate other improvements that can be made, as well as the impact this scheme and other various Government initiatives are having across the industry.”