Asked by: Hannah Bardell (Scottish National Party - Livingston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what safeguards are in place to protect consumers from payday lenders that have gone into administration.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government has fundamentally reformed regulation of the consumer credit market, including payday lending, by transferring responsibility to the Financial Conduct Authority (FCA) in 2014. This more robust regulatory system is helping to deliver the Government’s vision for a well-functioning and sustainable consumer credit market which is able to meet the needs of all consumers.
Where the FCA has found issues with firms’ practices through its supervision process, it has acted. However, many complaints regarding payday lenders originate before the FCA was responsible for the regulation in this market.
When a firm enters administration, assets are pooled and used to cover customer redress claims and administration costs with these claims being addressed in order of the creditor hierarchy. The payment of redress claims is a matter for the administrators.
The Financial Services Compensation Scheme (FSCS) is the compensation scheme of last resort for customers of UK authorised financial services firms and is funded by a levy on industry. The FSCS is an independent non-governmental body and carries out its compensation function within rules set by the Prudential Regulation Authority (PRA) and the FCA. The FCA has the power to decide which activities are given FSCS protection. In 2016, the FCA decided not to extend FSCS protection to most consumer credit activities because it believed other regulatory requirements were sufficient. The full reasoning behind the FCA’s decision is set out in a letter from its Chief Executive to the Chair of the Treasury Select Committee on 15 February 2019.
Asked by: Hannah Bardell (Scottish National Party - Livingston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans the Financial Conduct Authority has for the Financial Services Compensation Scheme to cover payday lenders that mis-sell or go into administration.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government has fundamentally reformed regulation of the consumer credit market, including payday lending, by transferring responsibility to the Financial Conduct Authority (FCA) in 2014. This more robust regulatory system is helping to deliver the Government’s vision for a well-functioning and sustainable consumer credit market which is able to meet the needs of all consumers.
Where the FCA has found issues with firms’ practices through its supervision process, it has acted. However, many complaints regarding payday lenders originate before the FCA was responsible for the regulation in this market.
When a firm enters administration, assets are pooled and used to cover customer redress claims and administration costs with these claims being addressed in order of the creditor hierarchy. The payment of redress claims is a matter for the administrators.
The Financial Services Compensation Scheme (FSCS) is the compensation scheme of last resort for customers of UK authorised financial services firms and is funded by a levy on industry. The FSCS is an independent non-governmental body and carries out its compensation function within rules set by the Prudential Regulation Authority (PRA) and the FCA. The FCA has the power to decide which activities are given FSCS protection. In 2016, the FCA decided not to extend FSCS protection to most consumer credit activities because it believed other regulatory requirements were sufficient. The full reasoning behind the FCA’s decision is set out in a letter from its Chief Executive to the Chair of the Treasury Select Committee on 15 February 2019.
Asked by: Hannah Bardell (Scottish National Party - Livingston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has made an assessment of the potential effect of zero-rating VAT on digital publications on the literacy of (a) young boys and (b) children on free schools meals who prefer to read on screen.
Answered by Jesse Norman
The Government keeps all taxes under review, including VAT.
Any amendments to the VAT regime as it applies to physical publications and e-publications must be carefully assessed against policy, economic and fiscal considerations. Any representations on this issue will be considered as part of the fiscal events process.
The impact on literacy of any reduction of VAT on e-publications is likely to depend on commercial decisions about the extent to which any tax saving would lead to price reductions for consumers, and any associated behavioural changes.
Asked by: Hannah Bardell (Scottish National Party - Livingston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits for the UK's literacy rates of removing VAT from digital products.
Answered by Jesse Norman
The Government keeps all taxes under review, including VAT.
Any amendments to the VAT regime as it applies to physical publications and e-publications must be carefully assessed against policy, economic and fiscal considerations. Any representations on this issue will be considered as part of the fiscal events process.
The impact on literacy of any reduction of VAT on e-publications is likely to depend on commercial decisions about the extent to which any tax saving would lead to price reductions for consumers, and any associated behavioural changes.
Asked by: Hannah Bardell (Scottish National Party - Livingston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to ensure that insurance companies do not unfairly discriminate against consumers with (a) historical and (b) current mental health conditions.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government is determined that all insurers should treat customers fairly and firms are required to do so under the Financial Conduct Authority’s (FCA) rules.
The FCA has placed access and vulnerability at the core of the its Mission and Business Plan. For example, it is currently exploring options for signposting consumers with pre-existing and historic medical conditions, such as mental health conditions, to specialist travel insurance providers so that these consumers are better able to access suitable insurance.
Asked by: Hannah Bardell (Scottish National Party - Livingston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 19 April 2018 to Question 135229 on Public Sector: Pensions, what progress has been made by responsible Departments in implementing the necessary regulatory changes arising from the Walker v. Innospec Limited judgement.
Answered by Elizabeth Truss
Departments responsible for the Police, Firefighters’, NHS, Local Government and Armed Forces pension schemes have made the necessary regulatory changes arising from the Walker v. Innospec Limited judgment. Departments responsible for the Teachers’ and Civil Service pension schemes are in the process of doing so.
Asked by: Hannah Bardell (Scottish National Party - Livingston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the implications for his policy on the rates of value added tax applied to newspapers and periodicals of the Cairncross review recommendation on extending the zero rate of that taxation to digital publications; and if he will make a statement.
Answered by Mel Stride - Secretary of State for Work and Pensions
The Government keeps all taxes under review, including VAT on e-publications.
Any amendments to the VAT regime as it applies to physical publications and e-publications must be carefully assessed against policy, economic and fiscal considerations.
Asked by: Hannah Bardell (Scottish National Party - Livingston)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what plans he has to tackle the increase in household debt.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The household debt-to-income ratio was 138% in Q4 2017, significantly below its pre-crisis high of 160% in Q1 2008. However, the government recognises the importance of supporting people who are over-indebted.
The government is setting up a new Single Financial Guidance Body, which will provide consumers with a single point of contact for help with all financial matters, and commission high-quality, free to user debt advice.
The government is also implementing a breathing space scheme, which will provide people with unmanageable debt a period of respite from creditor action of up to six weeks, in order to seek debt advice and enter into a sustainable debt solution.
Asked by: Hannah Bardell (Scottish National Party - Livingston)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, how many companies that have Authorised Economic Operator status are headquartered in each of the nations of the UK.
Answered by Mel Stride - Secretary of State for Work and Pensions
There are a total of 625 businesses that currently have a valid AEO status. The total in each of the nations of the UK are:
534 - England
57 - Scotland
18 - Northern Ireland
16 - Wales
Asked by: Hannah Bardell (Scottish National Party - Livingston)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, how many companies have been awarded Authorised Economic Operator status in the UK in each of the last three years.
Answered by Mel Stride - Secretary of State for Work and Pensions
In each of the last three years the following number of businesses received Authorised Economic Operator (AEO) status:
Between 01/11/2016 and 31/10/2017 there were 185 authorisations
Between 01/11/2015 and 31/10/2016 there were 80 authorisations
Between 01/11/2014 and 31/10/2015 there were 42 authorisations
HM Revenue and Customs has seen a significant increase in applications since the introduction of the Union Customs Code.