Financial Risk Checks for Gambling

Debate between Matt Hancock and Stuart Andrew

Monday 26th February 2024 Westminster Hall

[The Parliamentary Under-Secretary of State for Culture, Media and Sport (Stuart Andrew)]

I thank the hon. Member for Neath (Christina Rees) for tabling this important debate, as well as everyone who signed the petition. My hon. Friend the Member for Tewkesbury (Mr Robertson) said that I always turn up to these events; I must confess I did not know that I had a choice. I may have made a different decision if I knew that, but there we are.

My right hon. Friend the Member for Dumfriesshire, Clydesdale and Tweeddale (David Mundell) quite rightly mentioned the book that he showed me. It looked like a very extensive book. I have not had chance to read it all yet, but I am sure that “Strongholds of Satan” by William Morgan will be valuable as I further my education in this whole exciting field of policy. In her opening comments, the hon. Member for Barnsley East (Stephanie Peacock) outlined the varying points that came up in the debate and the various views from stakeholders, whichever side of the debate they might be on. I am grateful for all the comments. The debate has been interesting and thought-provoking, and it is good to hear those different perspectives. That is why I always try to take the time to meet and engage with people and, crucially, listen to the points put forward to me.

As some have mentioned, we are walking a fine line and need to get it right to help those who may be entering the risk of gambling harm while ensuring that those who want to continue to gamble safely can do so. I want to recognise the concerns that many have had with the proposed system of checks for the highest-spending online customers to help identify that harm. Those concerns have been raised by colleagues, in the media and certainly with me over the past few months. I believe that the proposals for financial risk checks will represent a significant improvement for both businesses and customers, compared with the current situation.

A recent GambleAware study showed that almost three in five adults support the introduction of the checks. None the less, we and the Gambling Commission have listened and we want to get it right. We are clear that the risk checks should not overregulate the gambling sector, should not unduly disrupt the millions of people who gamble without suffering harm, and should not cause unnecessary damage to sectors that rely on betting, particularly horseracing. We and the Gambling Commission both recognise that it is not our job to tell people how to spend their money. As outlined in the gambling White Paper, we want to balance that freedom with the necessary action to tackle the devastating consequences that harmful gambling can have on individuals and communities.

We know that operators are operating onerous, ad hoc and inconsistent so-called affordability checks on a number of customers, often without being clear on why the checks are happening and normally requiring customers to provide data manually. The proposed system will be a significant improvement by having clear and proportionate rules to which all operators are held, allowing for financial data to be shared seamlessly with operators instead of burdening customers with information requests. The Gambling Commission’s consultation on these checks closed in October. I know from our discussions that it has given careful consideration to the nearly 2,000 responses that it has received, and it has been working very closely with relevant stakeholders, including my Department, industry representatives, the Information Commissioner’s Office, the financial services sector and others, to refine the proposals.

Understanding consumer perspective is vital for the commission. That is why it has a programme of research on the consumer voice, which is an ongoing piece of research using qualitative and quantitative methods to gather consumer perspectives, including on the consultation proposals relating to financial risk. That research has helped inform its thinking and will be published by the commission alongside the consultation response. I am glad that the points raised today reflect that some of the issues facing punters are not down to just these checks—other issues have quite rightly been raised.

Following the publication of a blog by the commission on 22 February, I am pleased to be able to provide colleagues with an update on these checks. Firstly, the Gambling Commission has confirmed that it will be proceeding with the proposal for financial risk checks. That includes the frictionless, light-touch financial vulnerability checks and the enhanced ones. However, following feedback through the consultation, the commission has confirmed that it will not require gambling businesses to consider an individual’s personal details, such as their postcode or job title, as part of the checks. I know that was a key concern for those who signed the petition, and I hope that demonstrates that the commission is carefully listening to the concerns as it finalises how the checks will work.

To ease the introduction of those checks, as we have heard they will initially come into force at a higher threshold for a short period, before reverting to a lower threshold later in the year. We expect the lower threshold to be closely aligned with that proposed in the White Paper, which will enable a smoother implementation for the small number of affected consumers. The checks will not be intrusive, and will use publicly available data—as has already been said.

The commission will require the industry to introduce these frictionless, light-touch checks in two stages; that is intended to happen over the course of this summer. Enhanced financial risk assessments will also be implemented for the important protections they can offer consumers who may be at financial risk, and to ensure that assessing financial risk can be done in a more frictionless manner than is currently possible. The Gambling Commission will therefore conduct a pilot and data collection period. That will involve the commission working with the credit reference agencies and a selection of gambling businesses to ensure that the process of assessment is as effective and streamlined as possible. The pilot will run for a minimum of four months, during which time the commission will consider all issues that arise. The commission is clear that this process will help to refine the final requirements and models for data sharing, and help to ensure that the intentions and commitments in the White Paper are fulfilled.

I am sure everybody agrees it is important that we do not skip ahead to full implementation before getting the details right. Indeed, I know that many right hon. and hon. Members, including my hon. Friend the Member for Shipley (Philip Davies), have made suggestions to me and to the commission. All of us want to find a solution that actively protects those most at risk of harm. The commission is actively considering all the proposals—including my hon. Friend’s—and I can confirm that many of the ideas that have been raised will be explored during the pilot stage, including looking at whether CATO or SCOR data is being used. By doing so, the commission can ensure that all the decisions that will be made are based on the evidence of what is working.

[Matt Hancock]

Will that include carving out horseracing in the same way that the national lottery has been carved out? Both of those have the lowest impact in terms of gambling harm and it would be inappropriate to treat the two differently.

[Stuart Andrew]

I have heard the national lottery mentioned a few times. Yes, it is unique—it is under its own separate legislative framework—but under the fourth licence conditions, player protection requirements will be increased and there will be conditions on payments for support, research, education and treatment.

I have also heard arguments for a carve-out for horseracing. I acknowledge that greater gambling harm occurs in online casinos, but we know that those who experience gambling harm use multiple products, and some have been using horseracing products. I have heard harrowing stories of people who have made losses on horseracing products alone.

Oral Answers to Questions

Debate between Matt Hancock and Stuart Andrew

Monday 24th March 2014 Commons Chamber

[Matthew Hancock]

As the right hon. Gentleman knows, the number of apprenticeships has risen sharply over the past few years, but at the same time we have to drive up the quality of the programme. Of course, all steps that can be taken must be taken in all areas, and I will ensure that the issue of south Yorkshire is raised specifically at the next meeting of the apprenticeship ambassadors network.

[Stuart Andrew (Pudsey) (Con)]

A number of businesses in my constituency have been reluctant to take part in apprenticeship schemes, fearing that they are bureaucratic and do not address individual needs. Does my hon. Friend agree that the only way to bring true benefit to young people is to train them in the skills that business and industry actually need, which will also help to fill the skills gap?

[Matthew Hancock]

I could not have put it better myself, and I agree strongly with my hon. Friend. That is what we are trying to do, by having a three-click programme for an employer to take on an apprentice and through wider reforms.

Oral Answers to Questions

Debate between Matt Hancock and Stuart Andrew

Thursday 23rd January 2014 Commons Chamber

[Matthew Hancock]

As I said, we do that on some of the largest procurements. If we are talking about action, the fact that a record number of people are in apprenticeships is action that we should support, and the fact that 1.5 million people across the country have started apprenticeships since 2010 is also action we should all be proud of.

[Stuart Andrew (Pudsey) (Con)]

3. What recent assessment he has made of the level of UK exports.

Oral Answers to Questions

Debate between Matt Hancock and Stuart Andrew

Monday 11th November 2013 Commons Chamber

[Matthew Hancock]

No, because the 16-to-19 bursary fund is better targeted. It is typical of Opposition’s proposals that the shadow Secretary of State’s proposal to bring back EMA came with a measure to pay for it that would have raised just over £100 million, leaving yet another black hole.

[Stuart Andrew (Pudsey) (Con)]

2. What steps he is taking to improve support for young carers.

Oral Answers to Questions

Debate between Matt Hancock and Stuart Andrew

Thursday 7th February 2013 Commons Chamber

[Matthew Hancock]

That is an important question. This summer, we introduced destination data that showed not only the proportion of children who go to university but the percentage from each school and college that go into apprenticeships. There is a new, important duty on schools to provide independent and impartial guidance. Ofsted will conduct a thematic review—to report in the summer—to show how progress has been made.

[Stuart Andrew (Pudsey) (Con)]

T1. If he will make a statement on his departmental responsibilities.