Asked by: Stella Creasy (Labour (Co-op) - Walthamstow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many officials in (a) his Department and (b) HMRC are working on Retained EU Law legislation, as (i) headcount and (ii) Full Time Equivalent.
Answered by Andrew Griffith - Shadow Secretary of State for Business and Trade
HMT and HMRC hold a large body of Retained EU Law (REUL), primarily in relation to Financial Services and tax (including excise, customs and VAT). A number of officials from both HMT and HMRC work on REUL legislation. This work is carried out as part of officials’ normal business activities, and we do not record the amount of staff time spent specifically on this work.
Asked by: Stella Creasy (Labour (Co-op) - Walthamstow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when he plans to publish the Government's response to its consultation on the Regulation of Buy-Now Pay-Later.
Answered by John Glen
The Government published a consultation on policy proposals for the regulation of Buy-Now Pay-Later (BNPL) on 21 October 2021, which closed on 6 January 2022. The Government is now reviewing responses to this consultation and considering next steps, and intends to publish a consultation response in the spring.
Asked by: Stella Creasy (Labour (Co-op) - Walthamstow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the impact of increasing living costs on the number of people using buy now pay later services.
Answered by John Glen
HM Treasury regularly monitors changes in the consumer credit market, including the impact of economic developments, as part of its normal process of policy development.
However, it does not hold information regarding the impact of increasing living costs on the number of people using Buy-Now Pay-Later (BNPL), or the prevalence of the use of BNPL products to purchase essential items. Instead, HMT draws on the research of various stakeholders, including consumer groups and the wider financial services industry, to inform policy development.
The Woolard Review into the unsecured credit market found several potential risks of consumer detriment from interest-free BNPL products. The Government recognises those risks, but also notes that as an interest-free product, BNPL can often be lower-risk than other forms of borrowing and a useful tool to help consumers manage their finances. That is why on 2 February 2021, the Government announced its intention to regulate BNPL products in a proportionate manner.
The Government published a consultation on policy proposals for the regulation of BNPL on 21 October 2021, which closed on 6 January 2022. The Government is now reviewing responses to this consultation and considering next steps and intends to publish a consultation response in the spring.
Asked by: Stella Creasy (Labour (Co-op) - Walthamstow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment the Government has made of the prevalence of the use of buy now pay later products to purchase (a) toiletries, (b) food and (c) other essential items.
Answered by John Glen
HM Treasury regularly monitors changes in the consumer credit market, including the impact of economic developments, as part of its normal process of policy development.
However, it does not hold information regarding the impact of increasing living costs on the number of people using Buy-Now Pay-Later (BNPL), or the prevalence of the use of BNPL products to purchase essential items. Instead, HMT draws on the research of various stakeholders, including consumer groups and the wider financial services industry, to inform policy development.
The Woolard Review into the unsecured credit market found several potential risks of consumer detriment from interest-free BNPL products. The Government recognises those risks, but also notes that as an interest-free product, BNPL can often be lower-risk than other forms of borrowing and a useful tool to help consumers manage their finances. That is why on 2 February 2021, the Government announced its intention to regulate BNPL products in a proportionate manner.
The Government published a consultation on policy proposals for the regulation of BNPL on 21 October 2021, which closed on 6 January 2022. The Government is now reviewing responses to this consultation and considering next steps and intends to publish a consultation response in the spring.