Asked by: Baroness Burt of Solihull (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the recommendations in the Centre for the Study of Financial Innovation's report The Dependency Trap—are we fit to face the future? that (1) a working partner should be allowed to contribute to a non-working partner's pension fund, and (2) couples should be able to contribute to a joint pension fund if they so wish.
Answered by Lord Bates
Individuals can make contributions of up £2,880 each year to a personal pension, self-invested personal pension, or stakeholder pension and receive basic rate income tax relief at, currently, 20% or £720 on their contribution. Those contributions can be funded by a working partner.
Regarding the proposal of a joint pension, since 1990, the UK's income tax system has been based on the principle of independent taxation. This provides that each individual is taxed on their personal income and has their own tax-free personal allowance, and their own set of tax thresholds. This fundamental principle provides everyone with absolute confidentiality for their personal tax affairs. For this reason, the Government is not currently considering changing this policy. A joint pension fund would not be consistent with the system of independent taxation.
Asked by: Baroness Burt of Solihull (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government whether they have any plans to strengthen the regulation of the funeral plan market in order to improve consumer protection.
Answered by Lord Bates
The provision of a funeral plan is defined as a regulated activity and falls within the Financial Conduct Authority’s regulatory remit unless specific exemption criteria are met. This arrangement and these exemption criteria are set out in the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001.
This legislation exempts funeral plan providers from the Financial Conduct Authority’s regulatory remit where the following financial arrangements are conducted, which are designed to ensure that the customer’s payments are secure:
the customer’s money is held in a trust fund, where more than half of the trustees are unconnected with the funeral plan provider. This trust must be managed by an authorised fund manager and be overseen by a Fellow of the Institute and Faculty of Actuaries; or
the customer’s money is placed in a life insurance policy, issued by an authorised insurer.
HM Treasury sets the legislative framework for the regulation of financial services, including the provision of funeral plans, and continues to keep such exemptions under review to ensure the maintenance of effective prudential and conduct standards.
Asked by: Baroness Burt of Solihull (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the current level of protection for consumers purchasing a funeral plan, including protection from inappropriate sales and marketing practices.
Answered by Lord Bates
The provision of a funeral plan is defined as a regulated activity and falls within the Financial Conduct Authority’s regulatory remit unless specific exemption criteria are met. This arrangement and these exemption criteria are set out in the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001.
This legislation exempts funeral plan providers from the Financial Conduct Authority’s regulatory remit where the following financial arrangements are conducted, which are designed to ensure that the customer’s payments are secure:
the customer’s money is held in a trust fund, where more than half of the trustees are unconnected with the funeral plan provider. This trust must be managed by an authorised fund manager and be overseen by a Fellow of the Institute and Faculty of Actuaries; or
the customer’s money is placed in a life insurance policy, issued by an authorised insurer.
HM Treasury sets the legislative framework for the regulation of financial services, including the provision of funeral plans, and continues to keep such exemptions under review to ensure the maintenance of effective prudential and conduct standards.
Asked by: Baroness Burt of Solihull (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government what assessment they have made of the financial and administrative burden to small businesses of the proposals to introduce mandatory quarterly reporting.
Answered by Lord O'Neill of Gatley
HM Revenue and Customs will publish an initial assessment of the impacts of the new requirements for businesses alongside an overview of the potential costs and savings as part of consultations planned this year. This will include the contribution these reforms will make towards the £400m administrative burdens reduction target for business.
Asked by: Baroness Burt of Solihull (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government what percentage of economic output was attributed to the retail sector in each of the last 10 years, and what estimate they have made of that sector’s contribution over the next 10 years.
Answered by Lord O'Neill of Gatley
The table below sets out the percentage of nominal output attributed to retail trade (except of motor vehicles and motorcycles) in each of the last 10 years:
Year | Retail trade as share of nominal output |
2006 | 5.6% |
2007 | 5.6% |
2008 | 5.6% |
2009 | 5.6% |
2010 | 5.7% |
2011 | 5.6% |
2012 | 5.7% |
2013 | 5.6% |
2014 | 5.6% |
2015 | 5.6% |
The Office for Budget Responsibility was created in 2010 to provide independent and authoritative analysis of the UK’s public finances, and economic forecasts.
The Office for Budget Responsibility do not forecast growth on a sub- sectoral level.
Asked by: Baroness Burt of Solihull (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what steps the Government is taking to protect bereaved families if their funeral plan provider goes out of business; and if he will review the effectiveness of procedures in place for those circumstances.
Answered by Andrea Leadsom - Parliamentary Under-Secretary (Department of Health and Social Care)
Under the terms of articles 59 and 60 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, money paid by a customer into a funeral plan must be placed by the plan provider either into a trust account managed by an independent fund manager or invested in a whole life insurance product from an authorised insurer.
The aim of these measures is to ensure that the money consumers pay funeral plan providers is kept securely and segregated from that of the business providing the plan, and is available when the time comes for the delivery of the funeral agreed in accordance with the plan specification.