Asked by: Mohammad Yasin (Labour - Bedford)
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 terms of the Financial Services Compensation Scheme to (a) protect savers when (i) banks and (ii) building societies merge and (b) increase the level of protection for accounts that originated under separate banking licences.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
The Financial Services Compensation Scheme (FSCS) carries out its deposit protection function within rules set by the Prudential Regulation Authority (PRA). Under PRA rules, customer deposits held by authorised banks, building societies and credit unions in UK establishments are protected by the FSCS up to £85,000 per person, per banking licence. Under PRA rules, if there is a merger, the relevant firm must normally inform depositors at least one month before it takes effect. They must then give depositors three months to withdraw or transfer any deposit balances above the FSCS compensation limit without incurring penalties.
The PRA is required to review the deposit protection limit every five years, with the next review due to occur by 2025.
Asked by: Lord Johnson of Marylebone (Conservative - Life peer)
Question to the Cabinet Office:
To ask His Majesty's Government what assessment they have made of the risk that higher education institutions succumb to pressure from student unions to undertake boycott divestment and sanction actions in relation to their investment and procurement decisions.
Answered by Baroness Neville-Rolfe - Minister of State (Cabinet Office)
The Government is aware that the BDS Movement has taken credit for divestments from Israeli companies carried out by universities following pressure from student campaigns. For example, the BDS Movement took credit for divestments from Israeli military suppliers by the University of Manchester in 2020 and procurement decisions by King’s College London and Southampton University. The Government is also aware of recent examples of student unions passing motions to lobby their universities to boycott and divest from Israeli companies, including for example Manchester University Student Union in 2022 and Warwick University Student Union in 2023. There are concerns that these campaigns can damage community cohesion and legitimise antisemitism. There are also examples overseas of the BDS Movement pressing universities to boycott or divest from Israeli companies for example in Norway or the United States of America. The Bill rightly applies to universities and higher education providers to prevent them succumbing to student union pressure in the future and to tackle this type of divisive activity on campuses.
Asked by: Lord Johnson of Marylebone (Conservative - Life peer)
Question to the Cabinet Office:
To ask His Majesty's Government whether they are aware of any examples in the past five years of higher education institutions succumbing to pressure from student unions to undertake boycott divestment and sanction actions in relation to their investment and procurement decisions.
Answered by Baroness Neville-Rolfe - Minister of State (Cabinet Office)
The Government is aware that the BDS Movement has taken credit for divestments from Israeli companies carried out by universities following pressure from student campaigns. For example, the BDS Movement took credit for divestments from Israeli military suppliers by the University of Manchester in 2020 and procurement decisions by King’s College London and Southampton University. The Government is also aware of recent examples of student unions passing motions to lobby their universities to boycott and divest from Israeli companies, including for example Manchester University Student Union in 2022 and Warwick University Student Union in 2023. There are concerns that these campaigns can damage community cohesion and legitimise antisemitism. There are also examples overseas of the BDS Movement pressing universities to boycott or divest from Israeli companies for example in Norway or the United States of America. The Bill rightly applies to universities and higher education providers to prevent them succumbing to student union pressure in the future and to tackle this type of divisive activity on campuses.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, following reports of the shrinkage of the non-prime lending market, what steps they are taking to ensure that vulnerable customers have access to fair and regulated credit products.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
The government is committed to taking steps to widen access to affordable credit, and is overseeing a number of initiatives to support this goal.
Since 2019, the government has made £100 million of dormant assets funding available to Fair4All Finance to support their work on financial inclusion, and an additional £45 million for initiatives to tackle the elevated cost of living. The government has also provided Fair4AllFinance with £3.8m of funding to pilot a No-interest Loans Scheme, designed for consumers in vulnerable circumstances who would benefit from affordable rather than high-cost credit.
As part of the Financial Services and Markets Act 2023, the government has amended the Credit Unions Act 1979 so that credit unions in Great Britain can offer a wider range of products and services.
Asked by: Navendu Mishra (Labour - Stockport)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department is taking steps to help (a) support and (b) promote credit unions.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
The Government is a strong supporter of credit unions, recognising the vital role that they play in the financial wellbeing of their communities, providing savings and affordable loans to their members. The Government is committed to ensuring that credit unions are supported in maximising their growth and success.
This summer, the Government amended the Credit Unions Act 1979 so that credit unions in Great Britain can offer a wider range of products and services. These changes allow credit unions to offer hire purchase agreements, conditional sale agreements, and insurance distribution services, diversifying their income streams. This will enable credit unions to continue to grow sustainably for the future and supports them in the vital role they play in financial inclusion.
Additionally, to date, the Government has allocated £145 million in dormant assets funding to Fair4All Finance which works to improve the availability of affordable credit, including through support for community finance providers.
The Government is continuing to work with credit unions and other industry members to assess how we can best support the sector going forward.
Asked by: Rupa Huq (Labour - Ealing Central and Acton)
Question
To ask the Member for South West Bedfordshire, representing the Church Commissioners, how many churches have been closed by the Church of England in each of the last 10 years.
Answered by Andrew Selous - Second Church Estates Commissioner
Between 2010 and 2019, 209 consecrated churches were formally closed, which amounted to just over 1%. Since the 1990s the rate of closure has remained steady at 20-25 per year out of a total of around 16,000 church buildings. It is important to note that new churches are also being built and that some congregations meet in other kinds of buildings.
More information can be found in the annual reports of the Church Commissioners, which are available in the House of Commons Library, or online here, in the sections for ‘Mission, Pastoral and Church Property’ or ‘Pastoral Administration’: https://www.churchofengland.org/about/leadership-and-governance/church-commissioners-england/how-we-are-governed/publications
Churches are first and foremost places of worship. The 2017 Taylor Review into sustainability of English Churches and Cathedrals ( https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/669667/Taylor_Review_Final.pdf ) found that the Government could also enable the church to serve local communities better by reviewing planning law around listed buildings, to enable Local Authorities to think more imaginatively about diversification and wider use. For over a decade the Church of England’s own ‘open and sustainable churches’ programme, has encouraged churches to consider partnering with a wide variety of community resources (e.g. post offices, village shops, children’s play areas, credit unions, foodbanks, co-working spaces) in sharing space: Sharing your building and finding partners | The Church of England
Asked by: Stephanie Peacock (Labour - Barnsley East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what support is available to homeowners who have accrued unmanageable debt due to increased mortgage interest rates.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The pricing of mortgages is a commercial decision for lenders, including relevant credit unions, in which the Government does not intervene. However, we recognise this is a concerning time for mortgage borrowers.
On Friday 23 June the Chancellor met with the UK’s largest mortgage lenders, UK Finance and the Financial Conduct Authority to discuss how lenders will provide support for those who encounter problems keeping up with their mortgage payments. At this meeting, lenders agreed to a new Mortgage Charter to support borrowers struggling with their mortgage payments that was published on 26 June. The Charter sets out the standards signatory lenders, which includes some credit unions, will adopt when helping their customers, including new flexibilities to help customers manage their mortgage payments over a short period.
The Charter is in addition to the significant safeguards already in place for consumers in the mortgage market. Financial Conduct Authority rules require lenders to engage individually with their customers who are struggling or who are worried about their payments in order to provide tailored support. The Government has also taken measures aimed at helping people to avoid repossession, including Support for Mortgage Interest (SMI) loans, and protection in the courts through the Pre-Action Protocol.
More widely, the Government is taking forward amendments to the Credit Unions Act 1979 through the Financial Services and Markets Act (FSMA) 2023 to allow the credit union sector to grow, by offering a wider range of products and services to their members. FSMA 2023 is central to delivering the Government’s vision to grow the economy and create an open, sustainable, and technologically advanced financial services sector.
Asked by: Stephanie Peacock (Labour - Barnsley East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to increased mortgage interest rates, what steps his Department is taking to promote credit unions.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The pricing of mortgages is a commercial decision for lenders, including relevant credit unions, in which the Government does not intervene. However, we recognise this is a concerning time for mortgage borrowers.
On Friday 23 June the Chancellor met with the UK’s largest mortgage lenders, UK Finance and the Financial Conduct Authority to discuss how lenders will provide support for those who encounter problems keeping up with their mortgage payments. At this meeting, lenders agreed to a new Mortgage Charter to support borrowers struggling with their mortgage payments that was published on 26 June. The Charter sets out the standards signatory lenders, which includes some credit unions, will adopt when helping their customers, including new flexibilities to help customers manage their mortgage payments over a short period.
The Charter is in addition to the significant safeguards already in place for consumers in the mortgage market. Financial Conduct Authority rules require lenders to engage individually with their customers who are struggling or who are worried about their payments in order to provide tailored support. The Government has also taken measures aimed at helping people to avoid repossession, including Support for Mortgage Interest (SMI) loans, and protection in the courts through the Pre-Action Protocol.
More widely, the Government is taking forward amendments to the Credit Unions Act 1979 through the Financial Services and Markets Act (FSMA) 2023 to allow the credit union sector to grow, by offering a wider range of products and services to their members. FSMA 2023 is central to delivering the Government’s vision to grow the economy and create an open, sustainable, and technologically advanced financial services sector.
Asked by: Catherine West (Labour - Hornsey and Wood Green)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the adequacy of the availability of access to lower cost credit through (a) credit unions, (b) Community Development Finance Institution and (c) other community lenders.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The government believes that credit, when provided responsibly and affordably, can be a useful financial tool to smooth income and manage unexpected costs, and that there is a strong case for building the provision of such credit, particularly for underserved groups. The government is committed to taking steps to widen access to affordable credit, including by credit unions and community development finance institutions (CDFIs), and is overseeing a number of initiatives to support this goal.
Since 2019, the government has made £100 million of dormant assets funding available to Fair4All Finance to support their work on financial inclusion, and an additional £45 million for initiatives to tackle the elevated cost of living. This includes a package of tailored support to sustainably supporting the resilience of the credit union and CDFI sectors and scale affordable credit to serve people in vulnerable circumstances.
The government has provided Fair4AllFinance with £3.8m of funding to pilot a No-interest Loans Scheme, designed for consumers in vulnerable circumstances who would benefit from affordable rather than high-cost credit. Fair4All Finance are partnering with a range of lenders to deliver this pilot, including community lenders.
As part of the Financial Services and Markets Act 2023, the government has also amended existing legislation so that credit unions in Great Britain can offer a wider range of products and services. This will help allow credit unions to grow sustainably and support their role as providers of affordable consumer credit.
Asked by: Jonathan Reynolds (Labour (Co-op) - Stalybridge and Hyde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many officials in his Department work on policies relating to mutual societies.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Treasury allocates resources based on the priorities of the department, and officials within the Financial Services Group of HM Treasury provide advice to ministers on issues related to the mutuals sector. Resourcing is kept under regular review to ensure priorities are delivered.
The government recognises the value that mutuals bring to the UK economy. That is why we are taking appropriate steps to ensure that the legislative framework in which mutuals operate under is both a modern and supportive business environment.
As part of the Financial Services and Markets Bill, the Government is amending existing legislation so that credit unions in Great Britain can offer a wider range of products and services. In due course the government will also bring forward legislation to amend the Building Societies Act 1986, which will give building societies further flexibility in raising funds and modernise corporate governance requirements.
In addition, the government is supporting Sir Mark Hendrick’s Private Member’s Bill which would allow co-operatives, mutual insurers, and friendly societies further flexibility in determining for themselves the best strategies for their business, relating to their surplus capital and restrictions on the use of these assets.
Furthermore, the government is in active discussions with the Law Commission on options to proceed with a review of both the Co-operative and Community Benefit Societies Act 2014 and the Friendly Societies Act 1992 with a view to launching the reviews in the next financial year.