Draft Package Travel and Linked Travel Arrangements (Amendment) Regulations 2026

Kate Dearden Excerpts

Wednesday 15th April 2026 General Committees

[The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)]

Thank you for chairing, Mr Twigg, and I apologise for arriving late—I was confused about whether there was another Division in the Chamber. I thank the Government Whip for stepping in and the shadow Minister, the hon. Member for Grantham and Bourne, for his remarks.

The regulations build on legislation from the previous Government, and we have worked really closely with the sector, which is an important driver of growth in the UK. Great holidays bring so much joy to consumers all over the country, and our reforms are all about strengthening the package—which the hon. Gentleman touched on—for the travel framework, ensuring that consumers continue to benefit from strong protections, while clarifying those obligations to ease the burdens on business, supporting the sector and supporting a healthy and thriving economy.

The shadow Minister asked a couple of questions that I will respond to, first on the cost and the impact on businesses. The policy will deliver a net benefit to business of £19 million over 10 years, with £98 million in costs outweighed by £117 million in savings. The analysis considered a range of sources, including feedback from the consultation.

The best estimate we can point to from published analysis is from the 2023 impact assessment of the Package Travel and Linked Travel Arrangements Regulations 2018, as the hon. Gentleman might know. That analysis estimates that 13,979 UK businesses sell packages. I hope that provides him with clarity on the costs.

[Gareth Davies]

Can the Minister clarify whether she has met any businesses since taking office in this specific industry, and not just relied on the 2023 piece of work?

[Kate Dearden]

I was getting to those points—I thank the hon. Gentleman for the nudge.

[Gareth Davies]

Apologies.

[Kate Dearden]

We have expressed our intention for the regulations to come into force on 6 April 2027. These regulations are commencing next year to give businesses almost a year to implement the changes, and they have been aware of these changes since the Government response in December.

We have been working closely with industry to develop guidance and will continue to do so in the coming months. Officials have already conducted engagement and consulted on the regulation at pace. It is really important for these changes that we work closely with the industry and that it welcomes them. We want to make sure we work closely with the industry on that guidance.

The shadow Minister also asked about the 14-day refund period for businesses. Travel organisers are required to refund consumers within 14 days of cancellation, but sometimes that will be because of a failure from a third party. Introducing a 14-day refund period for businesses from those third parties will create more certainty for travel organisers, helping them to manage cash flow and recover costs. That covers most of his questions, but I am happy to answer any more if he has any. Otherwise, I commend the regulations to the Committee.

Question put and agreed to.