Asked by: Lord Alton of Liverpool (Crossbench - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government who was responsible for the processing error that resulted in families whose children qualified for Disability Living Allowance not receiving additional tax credits during 2011–14; what was the average total loss per family affected; and why restitution has not been backdated to cover the full period affected.
Answered by Lord Young of Cookham
Claimants were able to claim the higher rate of Child Tax Credits (CTC) by informing HM Revenue and Customs (HMRC) of eligibility at the time an initial claim for or renewal of CTC was made. Accompanying guidance provided details of the eligibility requirements for this. In addition, claimants could call the relevant HMRC helpline at any time. Between April 2011 and April 2014, the number of working families claiming the disabled child element increased from 145,000 to 152,000, and has since risen to 169,000.
It is the claimants’ responsibility to inform HMRC of their eligibility to the higher element of CTC. To help claimants claim the right amount, HMRC’s backup practice is to take information from Department for Work and Pensions to automatically update tax credit awards. However, for the period in question, this information sharing process proved unreliable. Although legally HMRC are only required to backdate claims for 31 days on receipt of a notification or claim, at the Autumn Statement, the Government announced that HMRC would make corrections for this year for the customers it has identified who have not claimed. Customers will receive a lump sum payment to reflect entitlement since 6 April 2016, and an on-going higher award.
A higher level of CTC is awarded to parents of disabled children. The disabled child part of CTC is worth up to £3,140 per year on top of the standard child element, and the severely disabled element is an additional £1,275. The maximum amount a family receives is dependent on their personal circumstances and household income.
Asked by: Lord Alton of Liverpool (Crossbench - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government whether the government of North Korea, or any of its state-owned companies, has access to the London Stock Exchange or holds financial interests in the UK.
Answered by Lord Young of Cookham
As part of UN and EU sanctions, banks are required to close existing branches, subsidiaries or accounts in North Korea where it has been determined that they contribute to North Korea’s ballistic missile programmes. The sanctions also prohibit any commercial activity by the Government of North Korea (including legal persons, entities or bodies owned or controlled by them).
Assets owned or controlled in the EU by designated DPRK persons, entities or bodies, including government bodies, are subject to an asset freeze and cannot be traded on the London Stock Exchange. A list of designations which has been placed in the Library includes a number of DPRK government and state-owned bodies. HM Treasury implements these financial sanctions in the UK. Non-compliance with financial sanctions is a criminal offence and HM Treasury works closely with law enforcement to ensure sanctions breaches are dealt with appropriately. For reasons of confidentiality, the Treasury does not make public the details of individual reports of frozen assets.
Asked by: Lord Alton of Liverpool (Crossbench - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government whether the North Korean Embassy in London has access to any UK financial system, including the banking and insurance systems.
Answered by Lord O'Neill of Gatley
The UN Security Council and EU have implemented sanctions targeted at North Korea’s nuclear and ballistic missile programmes. These sanctions are in effect in the UK but are not targeted at the North Korean Embassy or its staff.
HM Treasury is aware that the Embassy has had difficulty in finding a bank in the UK to open an account. It is for banks to decide on their risk appetite and to take into account the costs of managing those risks when determining whom they do business with.
Asked by: Lord Alton of Liverpool (Crossbench - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government how the Treasury ascertains that the funds of UK companies that operate in North Korea do not contribute to that country’s nuclear and ballistic missile programme or its human rights violations.
Answered by Lord O'Neill of Gatley
The Office of Financial Sanctions Implementation (OFSI) in HM Treasury is responsible for ensuring that financial sanctions, including those relating to the Democratic People’s Republic of Korea’s (North Korea), are properly understood, implemented and enforced in the United Kingdom.
OFSI is not an investigative or prosecutorial body but reviews suspected breaches of financial sanctions and then passes information to law enforcement bodies who would determine whether an investigation and or prosecution is appropriate.
Asked by: Lord Alton of Liverpool (Crossbench - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government, further to the Written Answer by Lord O’Neill of Gatley on 2 February (HL5230), what assessment they have made of whether any North Korean banks or businesses that have no relationship to North Korea’s nuclear programme, or programmes related to other weapons of mass destruction and ballistic missiles, have direct or indirect access to the UK’s financial system, and whether any UK banks provide financial services to (1) North Korean individuals or entities, or (2) any third-party banks or entities, not linked to such programmes.
Answered by Lord O'Neill of Gatley
In 2006 the United Nations imposed restrictions on a range of goods from entering or leaving North Korea and imposed a travel ban and asset freeze against those persons designated as persons who engage in or provide support for North Korea’s nuclear-related, other weapons of mass destruction related and ballistic missile-related programmes. These restrictions were implemented in the EU in 2007, and have subsequently been expanded by the EU.
Under the current EU Regulation, UK financial institutions are able to establish banking relationships with North Korean banking institutions if there are no reasonable grounds to believe this will contribute to North Korea’s nuclear-related, other weapons of mass destruction related or ballistic missile-related programmes. In practice, there are almost no financial links between the UK and North Korea. North Korea is almost wholly dependent on China for international assistance.
Asked by: Lord Alton of Liverpool (Crossbench - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government, further to the Written Answer by Lord O’Neill of Gatley on 26 January (HL4928), whether any assets linked to North Korean individuals or organisations that are not associated with the Democratic People’s Republic of Korea’s (DPRK) nuclear programmes are held in the UK; and what steps they are taking to freeze assets held by individuals or organisations that are not associated with the DPRK nuclear programme that they suspect to be linked to weapons proliferation, smuggling, money laundering, or human rights abuses in North Korea.
Answered by Lord O'Neill of Gatley
Existing UN and EU sanctions against North Korea, which include measures such as asset freezes, are based upon UN Security Council Resolutions prohibiting the further development of North Korea’s nuclear and ballistic missile programmes. Therefore, the current requirement to freeze funds or economic resources only occurs in circumstances where the funds and economic resources are controlled by the persons and entities designated by the Sanctions committee, the Security Council or the EU council as being engaged in North Korea’s nuclear-related, ballistic missile related, or other weapons of mass destruction-related programmes.
The UK is currently discussing a response to the nuclear test of 6 January with key allies and partners. We want the response to be robust and send North Korea a clear signal that it must change its approach to international peace and security, We are also using our position as a member of the UN Human Rights Council (HRC) to discuss ways in which the international community can increase the pressure on North Korea to improve its appalling human rights record. North Korea will be discussed during the forthcoming March session of the HRC.
Asked by: Lord Alton of Liverpool (Crossbench - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government what assessment they have made of whether any North Korean banks or businesses have direct or indirect access to the UK’s financial system, and whether any UK banks provide financial services to (1) North Korean individuals or entities, or (2) any third-party banks or entities that have engaged with North Korean individuals or entities engaged in sanctionable conduct.
Answered by Lord O'Neill of Gatley
In 2006 the United Nations imposed restrictions on a range of goods from entering or leaving North Korea and imposed a travel ban and asset freeze against those persons designated as persons who engage in or provide support for North Korea’s nuclear-related, other weapons of mass destruction related and ballistic missile-related programmes. These restrictions were implemented in the EU in 2007, and have subsequently been expanded by the EU.
The EU regulation prohibits financial institutions establishing new correspondent banking relationships with North Korean financial institutions if there are reasonable grounds to believe that this could contribute to North Korea’s nuclear-related, other weapons of mass destructions related or ballistic missile-related programmes.
HM Treasury is responsible for implementing these financial sanctions in the UK. Failing to comply with financial sanctions is a criminal offence and HM Treasury works closely with law enforcement to ensure breaches of sanctions are dealt with appropriately.
Asked by: Lord Alton of Liverpool (Crossbench - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government whether any North Korean assets are held in the UK; and what steps they are taking to freeze assets they suspect to be linked to weapons proliferation, smuggling, money laundering, or human rights abuses in North Korea.
Answered by Lord O'Neill of Gatley
HM Treasury has, since 2007 implemented European Union sanctions against individuals and entities identified as linked to the Democratic People’s Republic of Korea’s (DPRK) nuclear programmes.
The result of these sanctions is that financial institutions are required to freeze funds and economic resources of persons, entities and bodies engaged in or providing support for North Korea’s nuclear-related, other weapons of mass destruction-related or ballistic missile-related programmes. Any assets in the UK which are owned, held or controlled by any of the 70 listed individuals and entities identified as linked to North Korea’s nuclear programmes are frozen. HM Government works to ensure that these measures are robustly implemented, including by looking to uncover assets which may be hidden behind complex company structures.
Asked by: Lord Alton of Liverpool (Crossbench - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government when the Financial Conduct Authority's consultation on telemarketing of payday loans, announced on 26 November 2014 during the passage of the Consumer Rights Act 2015 (HL Deb, col 913), will take place.
Answered by Lord O'Neill of Gatley
The Financial Conduct Authority has committed to undertake a consultation on unsolicited marketing calls, emails and text messages from consumer credit firms, including payday lenders. This will take place in the summer. The consultation will include specifically looking at whether these unsolicited communications should be banned, given the potential for causing significant distress to consumers.
The FCA requires that cold calling by phone, text or email makes both the identity of the firm clear, as well as the purpose of the communication, so the consumer can decide whether to proceed.