Asked by: Angela Crawley (Scottish National Party - Lanark and Hamilton East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking in preparation for the upcoming Financial Conduct Authority regulations for prepaid funeral plans to help ensure that people who have purchased plans from suppliers that do not apply for, or fail to receive, FCA approval will receive an equal plan from another provider or get a refund.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Safe Hands Funeral Plans has recently gone into administration. I am aware that the current situation will be distressing for customers of Safe Hands and can assure you that the Treasury continues to monitor the implementation of regulation in this sector closely.
I welcome the commitment from Dignity to provide funerals to Safe Hands’ customers for two weeks.
It is a regrettable fact that bringing a previously unregulated sector into regulation – whatever form that may take – creates a possibility that some providers are not able to meet the threshold for authorisation.
Where a provider is unable to obtain FCA authorisation because of underlying issues, it is important to understand that this is not an issue created by bringing the sector into regulation. Rather, bringing the sector into regulation exposes these unsustainable business models and prevents these problems from getting worse and impacting more consumers.
The FCA’s guidance is clear that providers who are not seeking or not able to obtain authorisation should either transfer their existing plans to a provider which is seeking authorisation, or wind down in an orderly way before regulation starts.
Asked by: Angela Crawley (Scottish National Party - Lanark and Hamilton East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to safeguard the customers of (a) Safe Hands and (b) other prepaid funeral providers that may not abide by FCA regulations.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Safe Hands Funeral Plans has recently gone into administration. I am aware that the current situation will be distressing for customers of Safe Hands and can assure you that the Treasury continues to monitor the implementation of regulation in this sector closely.
I welcome the commitment from Dignity to provide funerals to Safe Hands’ customers for two weeks.
It is a regrettable fact that bringing a previously unregulated sector into regulation – whatever form that may take – creates a possibility that some providers are not able to meet the threshold for authorisation.
Where a provider is unable to obtain FCA authorisation because of underlying issues, it is important to understand that this is not an issue created by bringing the sector into regulation. Rather, bringing the sector into regulation exposes these unsustainable business models and prevents these problems from getting worse and impacting more consumers.
The FCA’s guidance is clear that providers who are not seeking or not able to obtain authorisation should either transfer their existing plans to a provider which is seeking authorisation, or wind down in an orderly way before regulation starts.
Asked by: Angela Crawley (Scottish National Party - Lanark and Hamilton East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential impact of reducing VAT on energy bills on the consumer.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
The Government already applies a reduced rate of VAT at 5 per cent on domestic fuel and power such as gas and electricity.
The Government is providing significant financial support of up to £350 to the majority of households, which will cover more than half of the forecast £700 rise in energy bills for the average household. This support is worth £9.1 billion in 2022-23. This is more generous than removing VAT on domestic fuel and power, which would not be targeted because it would also benefit high-income households that do not need support. There would also be no guarantee that suppliers would pass on the discounts to all customers.
While the Government keeps all taxes under review, there are no plans to remove VAT on domestic fuel and power.
Asked by: Angela Crawley (Scottish National Party - Lanark and Hamilton East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment his Department has made of the potential merits of HMRC aligning their application processes to allow UK Companies to apply online for Certificates of Residence as is available to individuals and sole traders.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
HMRC recognises the importance of digital working and intends to introduce the facility for companies to apply for Certificates of Residence wholly online by 1 April 2022. This facility will also allow for partnerships and public bodies to apply for Certificates online, rather than needing to print out and send a form to HMRC.Asked by: Angela Crawley (Scottish National Party - Lanark and Hamilton East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking with HMRC to improve processing times for applications from UK businesses for Certificates of Residence.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
As announced at Tax Administration and Maintenance Day in November 2021, HMRC will embark on a project to improve processing times on Certificates of Residence for UK businesses. These improvements will come in the form of process changes and digital improvements.Asked by: Angela Crawley (Scottish National Party - Lanark and Hamilton East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Written Statement of 17 December 2020, HCWS67, when his Department plans to establish a compensation scheme for London Capital & Finance bondholders.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
In my Written Ministerial Statement on 17 December 2020, I outlined the three main channels through which London Capital & Finance plc (LCF) bondholders can seek compensation. These are the administration process, the Financial Services Compensation Scheme (FSCS), and the Financial Conduct Authority’s (FCA) Complaints Scheme.
My statement also announced that, taking into consideration the specific and complex set of circumstances surrounding the collapse of LCF, the Treasury will set up a compensation scheme which will assess whether there is justification for further one-off compensation payments in certain circumstances for some LCF bondholders . The Government will announce further details in due course.
Asked by: Angela Crawley (Scottish National Party - Lanark and Hamilton East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Written Statement of 17 December 2020, HCWS678, how the Government compensation scheme for London Capital & Finance bondholders will be administered.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
In my Written Ministerial Statement on 17 December 2020, I outlined the three main channels through which London Capital & Finance plc (LCF) bondholders can seek compensation. These are the administration process, the Financial Services Compensation Scheme (FSCS), and the Financial Conduct Authority’s (FCA) Complaints Scheme.
My statement also announced that, taking into consideration the specific and complex set of circumstances surrounding the collapse of LCF, the Treasury will set up a compensation scheme which will assess whether there is justification for further one-off compensation payments in certain circumstances for some LCF bondholders . The Government will announce further details in due course.
Asked by: Angela Crawley (Scottish National Party - Lanark and Hamilton East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Written Statement of 17 December 2020 HCWS678, whether the Government compensation scheme for London Capital and Finance plc bondholders will be available to all bondholders with no restrictions on the size or the timing of their investment.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
In my Written Ministerial Statement on 17 December 2020, I outlined the three main channels through which London Capital & Finance plc (LCF) bondholders can seek compensation. These are the administration process, the Financial Services Compensation Scheme (FSCS), and the Financial Conduct Authority’s (FCA) Complaints Scheme.
My statement also announced that, taking into consideration the specific and complex set of circumstances surrounding the collapse of LCF, the Treasury will set up a compensation scheme which will assess whether there is justification for further one-off compensation payments in certain circumstances for some LCF bondholders . The Government will announce further details in due course.
Asked by: Angela Crawley (Scottish National Party - Lanark and Hamilton East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of extending the Self-Employment Income Support Scheme to freelance performers and musicians under the measures announced in the Winter Economy Plan.
Answered by Jesse Norman
The Self-Employment Income Support Scheme (SEISS) has provided and will continue to provide support to the self-employed, including freelance performers and musicians who meet the eligibility criteria. The third grant, combined with up to £14,070 worth of support for each individual from the first and second grants, makes the SEISS one of the most generous schemes for the self-employed in the world.
The third grant will be available to self-employed individuals who have been affected by reduced demand or have been unable to trade due to COVID-19, which they believe will lead to a significant reduction in their trading profits. This will ensure that support is targeted at those who most need it.
The SEISS continues to be just one element of a substantial package of support for the self-employed. Other elements of the package include Bounce Back loans, tax deferrals, rental support, mortgage holidays, self-isolation support payments and other business support grants.
The Government has announced a £1.57bn Culture Recovery Fund to protect the cultural sectors through the COVID-19 pandemic, in order to help to ensure a vibrant future for the cultural and creative sectors on the other side of the COVID-19 crisis. To date, £560m in grant funding has been allocated to nearly 3,000 cultural organisations in England. Organisations supported include galleries, theatres, museums, orchestras, music venues, comedy clubs and festivals. This funding will help to enable performances to restart, protect jobs and create opportunities for freelancers. Further allocations will be announced in the coming weeks.
Asked by: Angela Crawley (Scottish National Party - Lanark and Hamilton East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of potential merits of introducing the Directors Income Support Scheme.
Answered by Jesse Norman
I refer the Honourable Member to the answer given on 24 November to UIN 115585.