Asked by: Gareth Thomas (Labour (Co-op) - Harrow West)
Question to the Wales Office:
To ask the Secretary of State for Wales, whether they will require their department and agencies to offer payroll deductions to all employees to enable them to join a credit union.
Answered by Jo Stevens - Secretary of State for Wales
Staff in my Department are employed by the Ministry of Justice (MoJ), which provides payroll services on our behalf.
The MoJ does not currently operate a payroll‑deduction facility for credit union membership, however, staff who wish to join a credit union can already do so independently. My department continues to support staff financial wellbeing through the MoJ’s wider financial wellbeing offer, which provides access to information, tools, and advice.
Asked by: Gareth Thomas (Labour (Co-op) - Harrow West)
Question to the Attorney General:
To ask the Solicitor General, whether they will require their department and agencies to offer payroll deductions to all employees to enable them to join a credit union.
Answered by Ellie Reeves - Solicitor General (Attorney General's Office)
The AGO or its sponsored departments do not offer payroll deduction facility to employees to enable them to join a credit union.
Asked by: Gareth Thomas (Labour (Co-op) - Harrow West)
Question
To ask the Chairman of the Public Accounts Commission, whether the Commission has had discussions with the National Audit Office regarding employee payroll deductions to credit unions.
Answered by Clive Efford
This is not a matter that the Commission has discussed with the National Audit Office.
The NAO does not currently operate any payroll deduction arrangements for credit unions, nor does it have any active schemes or mechanisms in place that facilitate credit union deductions from employees’ salaries.
Asked by: Gareth Thomas (Labour (Co-op) - Harrow West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will ask the Chief Executive of HMRC to meet with the Permanent Secretary of the Department for Work and Pensions and the Permanent Secretary of the Ministry of Defence to discuss the potential merits of payroll deduction for credit union schemes.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC’s financial wellbeing offer for its workforce, aligned to the Civil Service Financial Strategy, includes access to a variety of advances including rental deposits and season ticket loans, as well as debt/budgeting advice and support through its Employee Assistance Programme.
HMRC has no current plans to introduce payroll deduction arrangements, to enable its employees to join a Credit Union. It does not hold the role of policy lead for payroll deduction schemes across government, and decisions on the merits of payroll deduction arrangements would be a matter for the relevant departments.
Asked by: Gareth Thomas (Labour (Co-op) - Harrow West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make it her policy for HMRC to offer payroll deduction to its employees to enable them to join a credit union.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC’s financial wellbeing offer for its workforce, aligned to the Civil Service Financial Strategy, includes access to a variety of advances including rental deposits and season ticket loans, as well as debt/budgeting advice and support through its Employee Assistance Programme.
HMRC has no current plans to introduce payroll deduction arrangements, to enable its employees to join a Credit Union. It does not hold the role of policy lead for payroll deduction schemes across government, and decisions on the merits of payroll deduction arrangements would be a matter for the relevant departments.
Asked by: Gareth Thomas (Labour (Co-op) - Harrow West)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, whether he will estimate how many local Council offer their employees the opportunity to join a credit union by offering a payroll deduction service.
Answered by Alison McGovern - Minister of State (Housing, Communities and Local Government)
Local authorities are independent employers responsible for the management of their own workforces, including setting their own terms and conditions and employment packages.
Asked by: Gareth Thomas (Labour (Co-op) - Harrow West)
Question to the Department of Health and Social Care:
To ask the Secretary of State for Health and Social Care, whether he will estimate how many NHS employers offer their employees the opportunity to join a credit union by offering a payroll deduction service.
Answered by Karin Smyth - Minister of State (Department of Health and Social Care)
The Department does not hold this information. Local employers across the National Health Service are best placed to understand their staff’s needs and circumstances. NHS staff have access to a range of support for financial wellbeing, including credit union membership.
NHS Employers have published information to support NHS trusts on salary sacrifice arrangements and tax-free childcare, with further information available at the following link:
https://www.nhsemployers.org/articles/salary-sacrifice-schemes
Asked by: Gareth Thomas (Labour (Co-op) - Harrow West)
Question to the Department for Education:
To ask the Secretary of State for Education, whether she will make an estimate of how many education employers offer their employees the opportunity to join a credit union via payroll deduction.
Answered by Georgia Gould - Minister of State (Education)
The department does not hold this information.
Asked by: Gareth Thomas (Labour (Co-op) - Harrow West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions she has had with National Savings and Investments on the provision of Help to Save services by credit unions.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Chancellor of the Exchequer has not undertaken any recent engagement with National Savings and Investments on this issue.
HMRC Officials are continuing to take forward work on Help to Save reform, including engagement with a range of financial institutions, such as credit unions. This engagement is focused on exploring options for the future delivery approach of the scheme.
Asked by: Mohammad Yasin (Labour - Bedford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to improve public awareness of and regulate high-cost credit.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
Lenders offering high-cost credit are regulated by the Financial Conduct Authority (FCA). This oversight ensures that lending practices are fair and that consumers are protected.
In 2013 the Government placed a duty on the FCA to implement a price cap for high-cost short-term credit products. The price cap came into force in 2015 and ensures that consumers using these products will never repay more than 100% of the principal in interest, fees, and other charges.
Lenders are also required to follow the FCA’s rules on promotions and adverts, where non-compliance could lead to fines. The FCA requires that all adverts and other promotions must be clear, fair, and not misleading.
The Government is also taking steps to improve financial literacy and awareness across the population... As part of the Financial Inclusion Strategy, the Government announced plans to make financial education compulsory in primary schools in England through a new statutory requirement to teach citizenship, alongside a renewed emphasis on the subject in secondary schools in the subjects of mathematics and citizenship. These measures aim to equip young people with the knowledge and skills they need to navigate an increasingly complex financial landscape and make informed decisions throughout their lives.
More widely, the Financial Inclusion Strategy recognises the useful role of responsible credit in helping households manage their cashflow and meet unexpected costs. The Strategy includes measures to support people’s access to responsible credit, including support for community finance providers, like credit unions.