Asked by: Claire Hazelgrove (Labour - Filton and Bradley Stoke)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the adequacy of the criteria used by LINK when determining whether a community should receive a banking hub; and what steps he is taking to help ensure that communities which have lost access to high street banking services are able to access face-to-face banking.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
Under the statutory access to cash regime, LINK is the coordination body for cash access arrangements and undertakes cash access assessments. Where an assessment identifies a gap, LINK determines the additional cash access service required, which may include a banking hub.
When asked to carry out a cash access assessment, LINK takes into consideration a wide range of criteria, including those unique to each location, such as the size and vulnerability of the population, existing and remaining cash access facilities and the number of shops. Specifically, LINK takes into consideration population demographics, public transport links and whether it is reasonable for people to travel to nearby facilities, including the actual travel distance. LINK uses a catchment area of 3 miles in rural locations and 1 mile in urban areas and considers if there is a significant impact on nearby towns
Where a resident, community organisation or other interested party feels access to cash in their community is insufficient, they can submit a request for a cash access assessment. LINK’s access to cash assessment process can be found on its website. If LINK determines that no further cash solutions are required, any member of the public can ask LINK to review their decision within 28 days of the original assessment, stressing their concerns. If the member of the public remains dissatisfied after this step, the matter may be referred to the Independent Assessor.
There are currently no existing legislative or regulatory protections for the provision of access to in-person banking services. That is why on 14 May, the Government commissioned an independent Review into Access to Banking Services to assess the impact of changes in the provision of in-person banking services. The Review will examine whether changes to access to in person banking services are causing consumer detriment and the scale of any detriment. Alongside the Review, the Financial Services and Markets Bill includes a power to allow the Government to take action in future to protect access to banking services, should this be necessary. This power ensures the Government can act swiftly and proportionately, including through future regulation, if the evidence from the Review supports intervention.
The Government understands the importance of banking services to communities, including those in rural and coastal areas and market towns, and continues to work closely with industry to support the roll-out of 350 banking hubs by the end of this Parliament. Over 280 hubs have been announced so far, and more than 240 are already open across the UK.
Asked by: Claire Hazelgrove (Labour - Filton and Bradley Stoke)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what alternative routes are available to communities following a decision by LINK not to recommend a banking hub for their area.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
Under the statutory access to cash regime, LINK is the coordination body for cash access arrangements and undertakes cash access assessments. Where an assessment identifies a gap, LINK determines the additional cash access service required, which may include a banking hub.
When asked to carry out a cash access assessment, LINK takes into consideration a wide range of criteria, including those unique to each location, such as the size and vulnerability of the population, existing and remaining cash access facilities and the number of shops. Specifically, LINK takes into consideration population demographics, public transport links and whether it is reasonable for people to travel to nearby facilities, including the actual travel distance. LINK uses a catchment area of 3 miles in rural locations and 1 mile in urban areas and considers if there is a significant impact on nearby towns
Where a resident, community organisation or other interested party feels access to cash in their community is insufficient, they can submit a request for a cash access assessment. LINK’s access to cash assessment process can be found on its website. If LINK determines that no further cash solutions are required, any member of the public can ask LINK to review their decision within 28 days of the original assessment, stressing their concerns. If the member of the public remains dissatisfied after this step, the matter may be referred to the Independent Assessor.
There are currently no existing legislative or regulatory protections for the provision of access to in-person banking services. That is why on 14 May, the Government commissioned an independent Review into Access to Banking Services to assess the impact of changes in the provision of in-person banking services. The Review will examine whether changes to access to in person banking services are causing consumer detriment and the scale of any detriment. Alongside the Review, the Financial Services and Markets Bill includes a power to allow the Government to take action in future to protect access to banking services, should this be necessary. This power ensures the Government can act swiftly and proportionately, including through future regulation, if the evidence from the Review supports intervention.
The Government understands the importance of banking services to communities, including those in rural and coastal areas and market towns, and continues to work closely with industry to support the roll-out of 350 banking hubs by the end of this Parliament. Over 280 hubs have been announced so far, and more than 240 are already open across the UK.
Asked by: Claire Hazelgrove (Labour - Filton and Bradley Stoke)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the adequacy of overseas scale rates for flight crews.
Answered by Dan Tomlinson - Exchequer Secretary (Cabinet Office) (Jointly with HM Treasury)
Where employers reimburse allowable travel expenses, tax relief is available provided the expenses are wholly, exclusively and necessarily incurred for work purposes.
Ordinarily, employers must hold evidence of the employee’s actual expenditure. However, to reduce administrative burdens on employers, HMRC allows expenses for travel outside the UK to be reimbursed without evidence up to the levels contained within the overseas scale rates.
Where the overseas scale rates do not cover the expense incurred by employees, employers can still reimburse and provide tax relief provided they have appropriate evidence.
The Government keeps all taxes under review as part of the policy‑making process. Any decisions on future changes in this area will be taken in the context of the wider public finances.
Asked by: Claire Hazelgrove (Labour - Filton and Bradley Stoke)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the adequacy of the availability, affordability and terms of insurance for people (a) diagnosed with sickle cell disease and (b) carrying the sickle cell trait.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The government has not made a specific assessment regarding insurance for individuals with sickle cell disease. However, the government recognises the important role of insurance products in building the financial resilience of consumers and protecting them when things go wrong. The government’s Financial Inclusion Strategy seeks to close gaps in protection and ensure that the insurance sector is well-placed to support the financial wellbeing of households and vulnerable customers.
The Equality Act 2010 generally prohibits discrimination based on certain personal characteristics. However, the law accepts that some exceptions, relating to age and disability, apply for insurance. The Act stipulates an insurance provider cannot refuse to cover potential consumers or charge more for insurance as a result of these characteristics, unless they base their risk assessment on relevant information from a reliable source and (in the case of the disability exception) it is reasonable for the insurer to refuse cover or charge more.
However, the Financial Conduct Authority, as the independent regulator, requires firms to ensure their products offer fair value. The FCA has been clear that it will be monitoring firms, and, where necessary, it will take action.
Since 2021, the FCA has required firms providing travel insurance to signpost consumers with pre-existing medical conditions to a directory of specialist providers if they are declined cover, offered cover with an exclusion, or charged a significantly higher premium based on a pre-existing medical condition.
Asked by: Claire Hazelgrove (Labour - Filton and Bradley Stoke)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of (a) tax and (b) pay slip processes for individuals with dyscalculia.
Answered by James Murray - Financial Secretary to the Treasury and Paymaster General
As tax and pay slip processes cover a significant range of HMRC activity, HMRC have not been able to provide a specific impact assessment for individuals with dyscalculia.
The HMRC Charter and Principles of support set out HMRC’s commitments to identifying and supporting all customers who need extra help. The need for extra help can cover a range of circumstances which could include individuals with dyscalculia.
Asked by: Claire Hazelgrove (Labour - Filton and Bradley Stoke)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of removing VAT on spectacles for people with a disability.
Answered by James Murray - Financial Secretary to the Treasury and Paymaster General
The government offers support for individuals to help with the cost of glasses through NHS optical vouchers. Those eligible for help include children and those on certain income-related benefits. The value of optical vouchers varies from £42.40 to £233.56, depending on the level of a patient’s glasses prescription.
While spectacles attract the standard rate of VAT, health and welfare services, including opticians and eye tests, are exempt from VAT made by qualifying opticians.
One of the key considerations for any potential new VAT relief is whether the cost saving is likely to be passed on to consumers. Evidence suggests that businesses only partially pass on any savings from lower VAT rates.
VAT is a broad-based tax that applies to most goods and services. Any new VAT relief must be considered in the context of the current fiscal position. As set out at the end of July, the Chancellor of the Exchequer has pledged to restore economic stability after revealing £22 billion of unfunded pressures in 2024-25 inherited from the previous Government.
Restoring fiscal responsibility and economic stability are critical to getting our economy growing and keeping taxes, inflation, and mortgages as low as possible.
As with all taxes, the Government welcomes representations on how the tax system can be improved.
Asked by: Claire Hazelgrove (Labour - Filton and Bradley Stoke)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will take steps to ensure that people entering into financial commitments are provided with adequate information on the (a) contract and (b) impact of borrowing.
Answered by Tulip Siddiq
The Financial Conduct Authority (FCA) is responsible for regulating the consumer credit market. It is part of a robust regulatory system which is driving the Government’s vision for a well-functioning and sustainable consumer credit market that meets consumers’ needs.
Prior to entering into an agreement, a firm must provide a consumer with a range of information, allowing them to compare the features of different credit products, and to ensure they understand the key terms of the agreement they are entering into. This includes Adequate Explanations required by FCA rules, as well as Pre-Contractual Credit Information set out in the Consumer Credit Act 1974.
Lenders are also required to adhere to rules and guidelines set out in the FCA’s Consumer Credit Sourcebook (CONC) on responsible lending. These rules are based on the principle that money should only be lent in circumstances where it is affordable and appropriate for the consumers’ needs. Such rules mandate firms to undertake affordability and creditworthiness assessments against consumers to assess their ability to repay the credit without causing financial difficulty.
You may also be interested to know that the Government is committed to reforming the Consumer Credit Act 1974 to make it fit for purpose and bolster consumer protection. As part of this, the Government will consider how to ensure consumers are better informed about the costs and conditions of credit products and can make informed decisions. The government will be publishing proposals in due course.
Asked by: Claire Hazelgrove (Labour - Filton and Bradley Stoke)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has had recent discussions with HMRC on recent technical issues affecting the online self assessment process; and whether HMRC has made an assessment of the cause of those issues.
Answered by James Murray - Financial Secretary to the Treasury and Paymaster General
HMRC had two unrelated incidents during August impacting the online Self-Assessment service, one for 21 hours and one for 8 hours. As part of HMRC’s standard process, both incidents were resolved as quickly as possible and analysed in post incident reviews where we took learnings and put in place actions to avoid future incidents.