Asked by: Michael Fallon (Conservative - Sevenoaks)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, with reference to the Hartz Reforms on employment in Germany, what support his Department provides to people in marginal employment in the UK.
Answered by Elizabeth Truss
A key purpose of the Hartz reforms was to increase flexibility in the German labour market and reduce tax pressures on low-paid and temporary workers. It helped Germany stop a long-term increase in unemployment.
The UK unemployment rate currently stands at 4.3%, a 42 year low. The UK ranks very well internationally on labour market flexibility. It is a key strength of our economy and has played an important role in achieving the near record employment levels that we currently enjoy.
We also exempt many low-paid jobs from income tax. This government has increased the personal allowance, and as a result, 1.2m individuals will be taken out of income tax altogether by 2018-19 compared to 2015-16.
We are also introducing Universal Credit, a long overdue and necessary reform. It responds dynamically to changes in income and ensures that it always pays to work more.
Asked by: Michael Fallon (Conservative - Sevenoaks)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what steps he is taking to promote better access to affordable credit; and whether his Department has plans to create a national interest-free credit scheme available to people eligible for universal credit.
Answered by Mel Stride - Shadow Chancellor of the Exchequer
The government is committed to facilitating sustainable financial services that give consumers greater choice in accessing credit. This includes support for the credit union sector, which provides an accessible alternative to high-cost credit.
The government announced at Autumn Statement 2016 that under the Proceeds of Crime Act, from 2018 a greater proportion of funds recovered from illegal money lenders will be allocated to incentivize vulnerable people to join, save and borrow with a credit union instead of turning to loan sharks. In the Autumn Budget 2017, the government announced its intention to help the sector expand by increasing the number of potential members of credit unions from two million to three million.
New Universal Credit claimants can apply for advance payments, and claimants who have been in receipt of Universal Credit for six months are eligible to apply for an interest-free budgeting advance to cover unexpected expenses.
Asked by: Michael Fallon (Conservative - Sevenoaks)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what steps his Department is taking to encourage the Financial Conduct Authority to regulate the rent-to-own sector by capping the total cost of goods bought through rent-to-own.
Answered by Steve Barclay
Treasury ministers and officials have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery. This includes regular meetings with the Financial Conduct Authority (FCA) to discuss relevant regulatory issues.
The government transferred the regulation of consumer credit, including rent-to-own, to the Financial Conduct Authority (FCA) in 2014.
The government has given the FCA strong powers to protect consumers, including the power to cap all forms of credit, and the FCA can do so if it thinks it is necessary to protect consumers. In 2015, the FCA capped the cost of payday lending, and the FCA has said that it will keep the issue of capping the cost of credit in other markets under review.
The government welcomes the ongoing work of the FCA to review the high-cost credit market, including the rent-to-own sector. The FCA published a feedback statement in July 2017, noting concerns with rent-to-own, catalogue credit, home-collected credit, and overdrafts. The FCA aims to consult on proposed remedies in Spring 2018.
Asked by: Michael Fallon (Conservative - Sevenoaks)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what steps he is taking to introduce an independent NHS Pay Review Body.
Answered by Elizabeth Truss
The independent NHS Pay Review Body (NHSPRB) exists and advises on the pay of NHS staff (this includes nurses, midwives, paramedics and all other staff on the national Agenda for Change pay system).
There is also an independent pay review body that advises on the pay of doctors and dentists, the Doctors and Dentists Remuneration Body (DDRB).