Asked by: Owen Thompson (Scottish National Party - Midlothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the impact of the cost of living crisis on people who were ineligible to claim Government financial support during the covid-19 outbreak.
Answered by Simon Clarke
Throughout the pandemic, the Government sought to protect people’s jobs and livelihoods while also supporting businesses and public services across the UK. To do this, the Government has provided up to £400 billion of direct support for the economy.
COVID-19 support schemes were designed at pace at the outset of the pandemic in order to get as much support to as many people as possible, to target support for those who needed it most and to protect the taxpayer against error, fraud and abuse.
The government understands that people across the UK, including those most impacted by the pandemic are worried about the rising cost of living. In May, we announced over £15 billion of additional cost of living support, targeted at those with the greatest need. As a result, millions of vulnerable households will receive at least £1,200 of support this financial year, with the vast majority of households receiving at least £550.
This built on the over £22 billion previously announced, meaning government support for the cost of living now totals over £37 billion this year, equivalent to 1.5% of GDP.
Asked by: Owen Thompson (Scottish National Party - Midlothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to provide any further support to people in arrears on fuel and electricity bills.
Answered by Alan Mak
The Government recognises that millions of households across the UK have been impacted by rising energy bills and the wider cost of living. That is why the Government is providing over £15 billion in further support, targeted particularly on those with the greatest need. This package is in addition to the over £22 billion announced previously, with government support for the cost of living now totalling over £37 billion this year. The package includes:
The Government has also expanded and increased the Warm Home Discount. Three million vulnerable households will now receive £150 each year. The Government’s objective for the Warm Home Discount is to focus the support towards those on the lowest incomes and in, or at greatest risk, of fuel poverty.
The Government expects and encourages energy suppliers to make it their priority to work actively to move customers with large arrears balances onto repayment plans wherever possible. This is already an Ofgem licence condition for suppliers.
The Government is monitoring a range of pressures on households, including the cost of energy, and as we move into winter we will continue to listen to people’s concerns.
Asked by: Owen Thompson (Scottish National Party - Midlothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will hold discussions with Cabinet colleagues on setting a timetable for amending the rules on entitlement to a Widow’s or Widower’s Pension for people who remarry.
Answered by Richard Fuller - Shadow Chief Secretary to the Treasury
There are currently no plans to amend existing rules regarding the treatment of survivor pensions upon remarriage in public service pension schemes (PSPS). While some PSPS include provisions for ceasing the payment of survivor pensions upon remarriage, these have been removed in reformed PSPS introduced from 2015.
Asked by: Owen Thompson (Scottish National Party - Midlothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential merits of adopting equal tax treatment for beer and cider.
Answered by Alan Mak
The Government is currently undertaking a review of alcohol duties in order to simplify the system and make it fairer overall, including ensuring beer and cider both pay duty according to their alcoholic strength.
Asked by: Owen Thompson (Scottish National Party - Midlothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of changing the Advisory Electric Rate each quarter in order to reflect changes in energy prices.
Answered by Alan Mak
The Government introduced the Advisory Electric Rate (AER) in 2018. It applies to employees who use a fully electric vehicle as a company car.
The Advisory Electric Rate (AER) was changed in December 2021 from 4 pence per mile (ppm) to 5ppm. This was calculated using published consumption rates, adjusted to reflect real driving conditions, and the average cost of electricity.
However, employers are not required to use the AER. Instead, they can use different rates to reflect their employee’s circumstances. Provided they show that the bespoke rates do not result in a profit for the employee, there will be no tax to pay.
The Government keeps this policy under review.
Asked by: Owen Thompson (Scottish National Party - Midlothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to funeral plans coming under the the Financial Services Compensation Scheme as of 29 July 2022, whether previous Safe Hands Funeral Plans policy holders will be retrospectively awarded compensation equivalent to what they would be due under the Financial Services Compensation Scheme.
Answered by John Glen
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) from 29 July 2022. This will ensure that, for the first time, consumers are protected by compulsory and robust regulation.
Safe Hands Plans went into administration in March 2022. The government understands that this will be concerning for customers of Safe Hands and continues to monitor the implementation of regulation in this sector closely.
Dignity’s recent commitment to provide ongoing support to Safe Hands’ customers until November 2022 is welcome. This will ensure that any planholders who pass away during this time will receive a funeral without any additional charge.
Prior to the firm going into administration, Safe Hands Plans was not an authorised financial services firm. The Financial Services Compensation Scheme (FSCS) is the UK’s compensation scheme of last resort and pays compensation to consumers in respect of claims made in connection with regulated activities when authorised financial services firms fail. Extending the protection of the FSCS – which is funded by a levy on financial services firms – to unregulated firms would send an inappropriate and unhelpful message.
When the pre-paid funeral plan sector comes into regulation on 29 July, FSCS protection will apply for customers of firms that have obtained FCA authorisation, customers whose plans are transferred to such firms, and customers who buy funeral plans from such firms in the future.
Asked by: Owen Thompson (Scottish National Party - Midlothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of reviewing the levels of Approved Mileage Allowance Payments at more regular intervals in light of recent increases to fuel prices.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
The Government sets the Approved Mileage Allowance Payments (AMAPs) rates to minimise administrative burdens. AMAPs aim to reflect running costs including fuel, servicing and depreciation. Depreciation is estimated to constitute the most significant proportion of the AMAPs. Fuel costs only contribute to a fraction of AMAP rates and not the total rate.
Employers are not required to use the AMAPs. Instead, they can agree to reimburse the actual cost incurred, where individuals can provide evidence of the expenditure, without an Income Tax or National Insurance charge arising.
Alternatively, they can choose to pay a different mileage rate that is higher or lower than AMAPs. If an employee is paid less than the approved amount, they are allowed to claim Mileage Allowance Relief (MAR) from HMRC. However, if the payment exceeds the amount due under AMAPs, and this results in a profit for the individual, they will be liable to pay Income Tax and National Insurance contributions on the difference.
As with all taxes and allowances, the Government keeps AMAP rates under review and any changes are considered by the Chancellor.
Asked by: Owen Thompson (Scottish National Party - Midlothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the impact of the collapse of Safe Hands Funeral Plans on increases on the cost of living.
Answered by John Glen
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) from 29 July 2022. When FCA regulation takes effect, funeral plan providers will need to be authorised by the FCA in order to enter into or carry out funeral plan contracts.
Safe Hands Plans has recently gone into administration. The government understands that this development will be concerning for customers of Safe Hands and continues to monitor the implementation of regulation in this sector closely.
I was very pleased to see Dignity’s recent commitment to provide ongoing support to Safe Hands’ customers for the next six months. This will ensure that any planholders who pass away during this time will receive a funeral without any additional charge.
While the FCA does not yet regulate funeral plan providers, it is supporting the administrators and the wider industry as they look to find a longer-term solution for Safe Hands’ customers.
It is unfortunate but unavoidable 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.
The government understands that the rising cost of living is making life harder for people. These are global challenges: however, as set out in the Spring Statement, the government is providing support worth over £22 billion in 2022-23 to help families with these pressures.
Asked by: Owen Thompson (Scottish National Party - Midlothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will introduce a package of protection for previous policy holders with Safe Hands Funeral Plans.
Answered by John Glen
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) from 29 July 2022. When FCA regulation takes effect, funeral plan providers will need to be authorised by the FCA in order to enter into or carry out funeral plan contracts.
Safe Hands Plans has recently gone into administration. The government understands that this development will be concerning for customers of Safe Hands and continues to monitor the implementation of regulation in this sector closely.
I was very pleased to see Dignity’s recent commitment to provide ongoing support to Safe Hands’ customers for the next six months. This will ensure that any planholders who pass away during this time will receive a funeral without any additional charge.
While the FCA does not yet regulate funeral plan providers, it is supporting the administrators and the wider industry as they look to find a longer-term solution for Safe Hands’ customers.
It is unfortunate but unavoidable 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.
The government understands that the rising cost of living is making life harder for people. These are global challenges: however, as set out in the Spring Statement, the government is providing support worth over £22 billion in 2022-23 to help families with these pressures.
Asked by: Owen Thompson (Scottish National Party - Midlothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he had recent discussions with FRP Advisory on the collapse of Safe Hands Funeral Plans.
Answered by John Glen
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) from 29 July 2022. When FCA regulation takes effect, funeral plan providers will need to be authorised by the FCA in order to enter into or carry out funeral plan contracts.
Safe Hands Plans has recently gone into administration. The government understands that this development will be concerning for customers of Safe Hands and continues to monitor the implementation of regulation in this sector closely.
I was very pleased to see Dignity’s recent commitment to provide ongoing support to Safe Hands’ customers for the next six months. This will ensure that any planholders who pass away during this time will receive a funeral without any additional charge.
While the FCA does not yet regulate funeral plan providers, it is supporting the administrators and the wider industry as they look to find a longer-term solution for Safe Hands’ customers.
It is unfortunate but unavoidable 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.
The government understands that the rising cost of living is making life harder for people. These are global challenges: however, as set out in the Spring Statement, the government is providing support worth over £22 billion in 2022-23 to help families with these pressures.