This is obviously good. But it's a short-term move. From what I've read, there has been no serious discussion about changing the system that made this problem possible in the UK (or the U.S.). It will happen again.
Think about the schmuck who has $80,000 in credit debt, and his cards are maxed. The banks have cut him off. His savings are gone. He even spent his 401K. He's desperate. He thinks to himself "Uh oh, I need to cut back."
So he does. Until he gets a new credit card with a $20,000 limit. Then he goes right back to his old ways.
The UK (U.S.) needs to break the back of the system to prevent the welfare state from growing down the line. Otherwise, once the economy is moving and governments are flush with cash (taxes), the pols will go right back to hiring and buying votes.
After all, it's not like they're spending their money. So, why would they care?