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Is the payday loan charges cap a long-term solution?

The Financial Conduct Authority (FCA) has moved to cap the amount payday lenders can charge their customers.

From January payday loan rates will be capped at 0.8% of the amount borrowed a day.

Bishop Adrian Newman, chair of the Church Credit Champions Network, welcomed the new regulations and their attempt to curb the "exploitative end" of the payday loans market.

He also stressed the importance of promoting financial education, pointing to the Church of England's work in encouraging young people to save.

But Dr Stephen Davies, education director at the Institute of Economic Affairs, explained the FCA's changes would not prevent the "real need" many people have for short-term credit.

He described the measures as a "classic case" of dealing with the symptoms of a problem rather than the underlying issue.

First broadcast on BBC Radio 4's Today programme on Tuesday November 11 2014.

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