Asked by: Kevan Jones (Labour - North Durham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department plans to introduce new regulations for funeral plan providers, in response to Safe Hands Plans entering administration in March 2022.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
In January 2021, the government legislated to bring all pre-paid funeral plan providers and intermediaries within the regulatory remit of the Financial Conduct Authority (FCA). This means that by 29 July 2022 all funeral plan providers must be authorised by the FCA.
Safe Hands 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.
While the FCA does not yet regulate funeral plan providers, it is currently supporting the industry and administrators to see if a longer-term solution is possible for Safe Hands’ customers.
It is regrettable 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. However, a well-regulated market should promote effective competition and drive better outcomes for consumers in the long-term.
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 Government’s legislation has allowed for an 18-month transition period before the new regulatory regime comes fully into force on 29 July 2022. This transition period was intended to give existing providers sufficient time to prepare for the new regulatory requirements. 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: Kevan Jones (Labour - North Durham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what support he is providing to members of the public whose funeral plans are with Safe Hands Plans.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
In January 2021, the government legislated to bring all pre-paid funeral plan providers and intermediaries within the regulatory remit of the Financial Conduct Authority (FCA). This means that by 29 July 2022 all funeral plan providers must be authorised by the FCA.
Safe Hands 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.
While the FCA does not yet regulate funeral plan providers, it is currently supporting the industry and administrators to see if a longer-term solution is possible for Safe Hands’ customers.
It is regrettable 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. However, a well-regulated market should promote effective competition and drive better outcomes for consumers in the long-term.
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 Government’s legislation has allowed for an 18-month transition period before the new regulatory regime comes fully into force on 29 July 2022. This transition period was intended to give existing providers sufficient time to prepare for the new regulatory requirements. 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: Kevan Jones (Labour - North Durham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the effect of Safe Hands Plans entering administration on members of the public with existing policies with the company.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
In January 2021, the government legislated to bring all pre-paid funeral plan providers and intermediaries within the regulatory remit of the Financial Conduct Authority (FCA). This means that by 29 July 2022 all funeral plan providers must be authorised by the FCA.
Safe Hands 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.
While the FCA does not yet regulate funeral plan providers, it is currently supporting the industry and administrators to see if a longer-term solution is possible for Safe Hands’ customers.
It is regrettable 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. However, a well-regulated market should promote effective competition and drive better outcomes for consumers in the long-term.
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 Government’s legislation has allowed for an 18-month transition period before the new regulatory regime comes fully into force on 29 July 2022. This transition period was intended to give existing providers sufficient time to prepare for the new regulatory requirements. 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: Kevan Jones (Labour - North Durham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the Government has any plans to write off loans made under the Bounce Back Loan Scheme.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
There is no government policy to wholesale write off loans. Under the Bounce Back Loan Scheme (BBLS) all loans are liable to recovery action by lenders or – in the case of serious fraud or financial crime - law enforcement.
Unfortunately, some loans will ultimately not be recoverable and may result in lenders claiming on the government guarantee. All guarantee claims are scrutinised closely by the British Business Bank as administrators of the Scheme before they are settled. These claims include defaults due both to credit losses, where a business took the loan in good faith but could not make repayments and a smaller proportion that were marked as suspected fraud. Lenders continue to make recovery efforts even after they claim on the guarantee and return recovered funds to the government, so some of that money may be returned to HM Government in due course.
Asked by: Kevan Jones (Labour - North Durham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the effectiveness of Government fiscal policy in the context of the level of corporation tax paid by (a) Shell and (b) BP in the last three years.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
It would not be appropriate for the Government to comment on the affairs of individual taxpayers.
Asked by: Kevan Jones (Labour - North Durham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Annual Report on Major Projects 2020-21, published on 15 July 2021, what assessment he has made of the capability of his Department to manage the (a) scope, (b) time, (c) quality and (d) cost of its 36 category A projects.
Answered by Jesse Norman
The IPA has released a Deliverability Confidence Assessment (DCA) of GMPP projects in the Transparency document which accompanies the Annual Report. [1] (see deliverability assessment on column F). These represent the IPA’s evaluation of a project’s likelihood of achieving its aims and objectives, and doing so on time and on budget. Each DCA is followed by a departmental commentary that provides further explanation behind the GMPP projects’ rating.
[1] https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1002103/GMPP_Government_Major_Projects_Portofolio_AR_Data_March_2021.xls