Asked by: Lord McCrea of Magherafelt and Cookstown (Democratic Unionist Party - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what measures they are taking to curb inflation and assist consumers.
Answered by Lord Pitt-Watson - Parliamentary Secretary (HM Treasury)
The independent Monetary Policy Committee of the Bank of England has primary responsibility for maintaining price stability and returning inflation sustainably to the 2% target. The Government primarily supports the Bank to control inflation through fiscal discipline, controlling borrowing and reducing long term pressures on our public finances. Last year, borrowing fell by 1ppt to its lowest level for six years at 4.2% GDP.
We know that people across the country are struggling with the cost of living and are worried about events in the Middle East and what that means for consumer prices in the UK. In March, the Government announced a £50 million support package for families struggling with high heating oil costs as a result of the conflict – with £17 million dedicated to consumers in Northern Ireland specifically. The Government has been working with the Northern Ireland Executive to ensure that protections are fit for purpose for Northern Irish households, who are particularly reliant on heating oil.
Since July, the Government has taken action to reduce energy bills by removing VAT from household electricity from October 1. This will take around £45 off the yearly Ofgem price cap in October, benefitting millions of households this winter. To ensure that households in Northern Ireland (NI) receive the same support as quickly as the rest of the UK, the NI Executive will receive comparable funding to enable it to support NI Households with the cost of living. The VAT cut on domestic electricity comes on top of the £150 removed from bills at the last Budget, when the OBR estimated that Government policy at Budget 2025 would bring down inflation by 0.4ppt in 2026-27. The 5p cut and freeze to fuel duty has also been extended to the end of the year.
The Government is monitoring the situation in the Middle East carefully. We are committed to helping people across the UK and providing breathing space with everyday costs.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what estimate they have made of the cost to the Treasury of the Bank of England's quantitative tightening policies since 2022 in terms of the impact of reimbursed losses on the fiscal deficit and the increased cost of servicing government debt.
Answered by Lord Pitt-Watson - Parliamentary Secretary (HM Treasury)
Since October 2022, HM Treasury has transferred £110.72bn to the Bank of England to cover losses arising from the indemnity of the Asset Purchase Facility, the vehicle used to implement quantitative easing. This covers losses incurred from net interest costs and the sale and redemption of bonds as the portfolio is unwound.
Data on these cash transfers between HM Treasury and the Bank of England are made publicly available by the Office for National Statistics (ONS) in its monthly Public Sector Finances publication.
Time period | Cash transfers to HM Treasury total (£ million) | Cash transfers from HM Treasury total (£ million) |
Dataset identifier code | MT6A | MF7A |
2021-22 | 7,218 | 0 |
2022-23 | 4,164 | 5,010 |
2023-24 | 0 | 44,549 |
2024-25 | 0 | 36,323 |
2025-26 | 0 | 16,660 |
The Office for Budget Responsibility (OBR) forecasts the fiscal impact of quantitative tightening, including for the next three years, as part of the fiscal forecasts in its Economic and Fiscal Outlook. This was last updated in March 2026 (see table below), and the next scheduled update will be published on 28 October 2026.
Time period | Forecasted cash transfers from HM Treasury total (£ million) |
2026-27 | 15,500 |
2027-28 | 18,400 |
2028-29 | 20,800 |
2029-30 | 18,200 |
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what estimate they have made of the cost of the Bank of England's quantitative tightening to the Treasury in the next three years, in terms of reimbursed losses.
Answered by Lord Pitt-Watson - Parliamentary Secretary (HM Treasury)
Since October 2022, HM Treasury has transferred £110.72bn to the Bank of England to cover losses arising from the indemnity of the Asset Purchase Facility, the vehicle used to implement quantitative easing. This covers losses incurred from net interest costs and the sale and redemption of bonds as the portfolio is unwound.
Data on these cash transfers between HM Treasury and the Bank of England are made publicly available by the Office for National Statistics (ONS) in its monthly Public Sector Finances publication.
Time period | Cash transfers to HM Treasury total (£ million) | Cash transfers from HM Treasury total (£ million) |
Dataset identifier code | MT6A | MF7A |
2021-22 | 7,218 | 0 |
2022-23 | 4,164 | 5,010 |
2023-24 | 0 | 44,549 |
2024-25 | 0 | 36,323 |
2025-26 | 0 | 16,660 |
The Office for Budget Responsibility (OBR) forecasts the fiscal impact of quantitative tightening, including for the next three years, as part of the fiscal forecasts in its Economic and Fiscal Outlook. This was last updated in March 2026 (see table below), and the next scheduled update will be published on 28 October 2026.
Time period | Forecasted cash transfers from HM Treasury total (£ million) |
2026-27 | 15,500 |
2027-28 | 18,400 |
2028-29 | 20,800 |
2029-30 | 18,200 |
Asked by: Lord McCrea of Magherafelt and Cookstown (Democratic Unionist Party - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what plans they have to provide assistance to families under pressure due to rising bank mortgages.
Answered by Lord Pitt-Watson - Parliamentary Secretary (HM Treasury)
The Government recognises the pressure facing mortgage borrowers across the United Kingdom. Earlier this year, Ministers met with the six largest mortgage lenders alongside UK Finance to discuss the outlook for mortgage rates following the latest global developments. At that meeting, these lenders committed to proactively contact 1.6 million customers whose fixed-rate deals were due to end during 2026, setting out options well before payments change.
Lenders across the industry also reaffirmed their commitment to the Mortgage Charter. The Mortgage Charter is a voluntary agreement that covers 90% of the mortgage market and provides flexibilities to help borrowers manage their repayments over a short period. This includes permitting eligible borrowers to switch temporarily to interest-only payments, or extend their mortgage term, for six months, after which they can switch back without a new affordability check or affecting their credit score.
Financial Conduct Authority rules also provide significant protections for all borrowers, including ensuring all customers are treated fairly. Any borrower who is concerned about making their repayments should contact their lender. Seeking support and engaging with lenders to discuss options will not affect a borrower’s credit score in any way, and earlier engagement will mean that lenders can offer more support.
Asked by: Baroness Neville-Rolfe (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, further to the remarks by Lord Wilson of Sedgefield on 15 September (HL Deb col 1070) that “we are in a position where we have to raise taxes to help solve the problems that we were left with two years ago”, whether they intend to raise taxes in the forthcoming Budget.
Answered by Lord Pitt-Watson - Parliamentary Secretary (HM Treasury)
Fiscal stability and credibility underpin this Government's plans and the Chancellor is committed to meeting his fiscal rules. The Chancellor makes decisions on tax policy at fiscal events.
Asked by: Lord Mackinlay of Richborough (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what plans they have to extend the regime of no penalties for late submissions for the 2027–28 entrants to Making Tax Digital, as was the case for the first year of implementation.
Answered by Lord Pitt-Watson - Parliamentary Secretary (HM Treasury)
The Government introduced a temporary easement so that taxpayers joining Making Tax Digital for Income Tax from April 2026 will not receive penalty points for late quarterly updates during 2026/27.
Any decision on future penalty easements will be announced in the usual way.
Asked by: David Simmonds (Conservative - Ruislip, Northwood and Pinner)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, for what reason the Public Works Loan Board is a non-discretionary lender; and what consideration has been given to the potential merits of it assessing the purpose of a municipal loan application.
Answered by Emma Reynolds - Chief Secretary to the Treasury
The assessment of Public Works Loan Board loan applications is the responsibility of each local authority’s Section 151 (finance) Officer, who must be satisfied that they are acting in line with statute and affordability considerations. This framework preserves the principle that local authorities are accountable to their electorates for their decisions. The Public Works Loan Board prevents its loans being used to fund purely commercial investments, but otherwise operates as a non-discretionary lender.
HM Treasury keeps the PWLB’s lending arrangements under review to ensure borrowing supports local investment while managing risks to the public finances.
Asked by: Douglas Lumsden (Conservative - Aberdeen South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the First Minister of Scotland’s Programme for Government statement on 1 September 2026 that he would seek to identify new powers that could be quickly devolved to the Scottish Parliament, whether his Department (a) has undertaken and (b) plans to undertake modelling of the fiscal and economic effects of devolving additional powers; and whether he plans to publish any such modelling.
Answered by Emma Reynolds - Chief Secretary to the Treasury
The First Minister's statement refers to identifying powers that could be devolved to the Scottish Parliament. The Scottish Government has substantial tax and welfare powers and is responsible for its own policy choices in these areas. Any formal requests to HM Treasury relating to the devolution of additional powers will be considered in the usual way.Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government when they last reviewed contingency plans for buy-in and buy-out pension annuity products in the event of a life insurer having financial difficulties; and whether they plan to review this in the next year.
Answered by Lord Pitt-Watson - Parliamentary Secretary (HM Treasury)
The Government keeps the framework for managing insurer distress and failure under review. The Prudential Regulation Authority (PRA) is responsible for the prudential regulation and supervision of insurers and has a range of powers to intervene where firms experience financial difficulties. Insurers are subject to robust prudential requirements and ongoing supervision designed to protect policyholders and promote the safety and soundness of firms.
In 2023, HM Treasury consulted on proposals for an Insurer Resolution Regime, which would provide the authorities with additional tools to manage the failure of a systemic insurer in an orderly manner. The Government is considering the implementation of these proposals and will continue to engage with stakeholders on the development of the regime.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether there is a state guarantee for life insurers' buy-in or buy-out policies.
Answered by Lord Pitt-Watson - Parliamentary Secretary (HM Treasury)
The Prudential Regulation Authority carefully supervises insurers and requires them to maintain sufficient financial resources and robust risk-management arrangements. If a UK-regulated insurer fails, eligible annuity policies, as contracts of long-term insurance, are protected by the Financial Services Compensation Scheme at 100% with no upper limit.
The Government is also developing proposals for an Insurer Resolution Regime, following consultation in 2023. This would provide additional powers to manage the failure of a systemic insurer in an orderly way, helping to protect policyholders and financial stability.