Asked by: Catherine West (Labour - Hornsey and Friern Barnet)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of making the HMRC helpline a freephone service.
Answered by Richard Fuller - Shadow Chief Secretary to the Treasury
HMRC is not considering making HMRC helplines a freephone service.
Moving HMRC’s helplines onto freephone 0800 numbers would mean that HMRC would have to fund the helplines and pass the cost on to the taxpayers.
HMRC’s judgement is that it is fairer for the businesses and individuals that use the helpline to pay, rather than the public through general taxation.
0300 numbers, which HMRC currently uses, cost no more than 01 and 02 numbers and will typically come out of inclusive minutes on customers’ phone contracts.
Many customers will be able to access the services and support they need through one of our 200 plus digital services available through GOV.UK and via the HMRC app, which are free to use.
Every day around 1.4 million users are supported through HMRC's online digital services, not including thousands more customers who are using commercial tax software products to help manage their taxes.
Asked by: Catherine West (Labour - Hornsey and Friern Barnet)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of the increase in interest rates on (a) homeowners and (b) mortgage availability in Hornsey and Wood Green constituency.
Answered by Andrew Griffith - Shadow Secretary of State for Business and Trade
There are c.28.1 million households in the UK, 8.4 million of which have a residential mortgage. Around 75% of residential mortgage borrowers are on fixed-rate deals and are therefore shielded from interest rate rises in the short term.
When mortgage borrowers are in financial difficulty and struggling to pay their mortgage, Financial Conduct Authority guidance requires firms to provide support through tailored forbearance options. This could include measures such as a payment holiday, partial payment, or an extension of mortgage term.
The Government has also taken a number of measures aimed at helping people to avoid repossession, including Support for Mortgage Interest loans for those in receipt of an income-related benefit, and protection in the courts through the Pre-Action Protocol, which makes it clear that repossession must always be the last resort for lenders.
There remains a broad range of mortgage products on the market, and those looking to take out a mortgage are encouraged to shop around and speak to a mortgage broker. The pricing and availability of loans is a commercial decision for lenders in which the Government does not intervene.
Asked by: Catherine West (Labour - Hornsey and Friern Barnet)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will call for an independent inquiry into the Financial Conduct Authority's handling of the collapse of Blackmore Bonds.
Answered by Andrew Griffith - Shadow Secretary of State for Business and Trade
The Financial Conduct Authority (FCA) is responsible for securing an appropriate degree of consumer protection across a broad range of financial services products. However, it does not regulate all financial services firms and products. Blackmore Bond Plc was not authorised by the FCA and the sale of the ‘mini-bond’ product it offered was not an activity regulated by the FCA. The FCA does not have power to investigate a firm that is unauthorised and not carrying out any regulated activities. The Government therefore has no plans to commission an independent inquiry into the FCA’s handling of the collapse of Blackmore Bond plc.
Asked by: Catherine West (Labour - Hornsey and Friern Barnet)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions he has had with the Financial Services Ombudsman about reducing waiting times in both allocating and investigating cases.
Answered by John Glen
The Financial Ombudsman Service (FOS) is an independent non-governmental body. The Treasury is not involved in the day-to-day operations of the FOS and the remit of the FOS is set out by the Financial Conduct Authority. The rules on how the FOS should handle complaints state that ‘The ombudsman will attempt to resolve complaints at the earliest possible stage. Inevitably some cases will be more complex than others and therefore take more time to resolve, however the FOS should deal with all cases in a timely manner.
Nevertheless, the Government agrees that it is vitally important that the FOS should be accountable for its performance and the quality of its work. The FOS answers to a board of directors, appointed by the Financial Conduct Authority, and must make a report each year on the discharge of its functions which is required to be laid before Parliament. This ensures Parliament is able to scrutinise the efficiency, effectiveness and economy with which the FOS carries out its functions. There are also regular meetings between Treasury officials and the FOS where relevant emerging issues are discussed.
Asked by: Catherine West (Labour - Hornsey and Friern Barnet)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, for what reason his Department has decided not to cut VAT on domestic energy bills.
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: Catherine West (Labour - Hornsey and Friern Barnet)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of how much a single household of one person will receive from the Energy Bill Discount Scheme in in 2022-23; and if that household subsequently added another person from financial year 2023-24 onward, how much they would be paying in that year and each subsequent year via the increase in standing charge.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
All domestic electricity customers in Great Britain will receive a £200 reduction in their electricity costs from this October. This will be delivered via energy suppliers and will be clearly identifiable as a line item on electricity bills. All domestic energy consumers will pay a charge in future years. This will be reflected by Ofgem in the price cap for future years, and sufficient notice will be given to suppliers to price it into fixed and other tariffs.
We expect households will pay this back from 2023 – when energy prices are expected to be lower - through an increase to standing charges on their bills of around £40 per annum over five years. However to be clear, this is not a loan to either suppliers or households.
There will be cases where changes in people’s personal circumstances mean they may not directly be the recipient of the reduction, but still pay charges in future bills, or vice versa.
This approach is fiscally responsible while also helping customers manage the unprecedented increase in energy bills by spreading the increased costs of global prices over time. The policy will provide a significant reduction to bills this year whilst gas prices are at historic highs.
Asked by: Catherine West (Labour - Hornsey and Friern Barnet)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether a person under the age of 18 who received the Energy Bill Discount Scheme in 2022-23 as part of their family household would be eligible to pay back that loan in the event that that person moved into their own individual household from financial year 2023-24 onward.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
All domestic electricity customers in Great Britain will receive a £200 reduction in their electricity costs from this October. This will be delivered via energy suppliers and will be clearly identifiable as a line item on electricity bills. All domestic energy consumers will pay a charge in future years. This will be reflected by Ofgem in the price cap for future years, and sufficient notice will be given to suppliers to price it into fixed and other tariffs.
We expect households will pay this back from 2023 – when energy prices are expected to be lower - through an increase to standing charges on their bills of around £40 per annum over five years. However to be clear, this is not a loan to either suppliers or households.
There will be cases where changes in people’s personal circumstances mean they may not directly be the recipient of the reduction, but still pay charges in future bills, or vice versa.
This approach is fiscally responsible while also helping customers manage the unprecedented increase in energy bills by spreading the increased costs of global prices over time. The policy will provide a significant reduction to bills this year whilst gas prices are at historic highs.
Asked by: Catherine West (Labour - Hornsey and Friern Barnet)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of how much a single household of two people will receive from the Energy Bill Discount Scheme in 2022-23; and if that household subsequently split into two households of one person each from financial year 2023-24, how much they would each pay in (a) 2023-24 and (b) each subsequent year via the standing charge.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
All domestic electricity customers in Great Britain will receive a £200 reduction in their electricity costs from this October. This will be delivered via energy suppliers and will be clearly identifiable as a line item on electricity bills. All domestic energy consumers will pay a charge in future years. This will be reflected by Ofgem in the price cap for future years, and sufficient notice will be given to suppliers to price it into fixed and other tariffs.
We expect households will pay this back from 2023 – when energy prices are expected to be lower - through an increase to standing charges on their bills of around £40 per annum over five years. However to be clear, this is not a loan to either suppliers or households.
There will be cases where changes in people’s personal circumstances mean they may not directly be the recipient of the reduction, but still pay charges in future bills, or vice versa.
This approach is fiscally responsible while also helping customers manage the unprecedented increase in energy bills by spreading the increased costs of global prices over time. The policy will provide a significant reduction to bills this year whilst gas prices are at historic highs.
Asked by: Catherine West (Labour - Hornsey and Friern Barnet)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of changing the repayable loan of £200 to assist households with increased energy prices into a non-repayable grant in the event that energy and gas prices continue to rise in 2023-24.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
The Government recognises that many households will need support to help deal with the rising cost of energy. Therefore, the Chancellor of the Exchequer announced a package of support worth £9.1bn in 2022-23 on 3 February. This is composed of:
This is in addition to the existing support measures that are helping those most vulnerable to heat their homes over this winter. These include the Warm Home Discount, which is being expanded to 3m people and increased to £150, up to £300 Winter Fuel Payment for all households with at least one member above State Pension age and a £25 per week Cold Weather Payment – plus our £500 million Household Support Fund. We’re also providing £3bn over this Parliament to help more than half a million lower income homes become more energy efficient, saving them £290 per year on average.
The £200 reduction will be paid to all households and recouped over the next 5 years. This approach is fiscally responsible while also helping customers manage the unprecedented increase in energy bills by spreading the increased costs of global prices over time.
The Department for Business, Energy and Industrial Strategy (BEIS) will work closely with industry and consumer groups on how best to deliver this policy, including through a public consultation in the Spring.
Asked by: Catherine West (Labour - Hornsey and Friern Barnet)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will provide additional financial support to low income households to help with the rise of water bills from April 2022.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
The government is providing support worth around £12 billion this financial year and next to help families with the cost of living. This support includes the £500 million Household Support Fund to help vulnerable households with costs for essentials such as energy bills, food, clothing, and utilities over the winter.Water companies will also continue to offer a wide range of support, including bill discounts such as Watersure and social tariffs, adjusting payment plans and helping customers to get advice on benefits and managing debts. Water companies have also increased their customer engagement to inform households of these measures.