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
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
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
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
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
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
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
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.