Asked by: Lord Kennedy of Southwark (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the impact of the COVID-19 pandemic on those who are unbanked.
Answered by Lord Agnew of Oulton
The Government is committed to supporting all groups in society, including the most vulnerable, with the challenges caused by Covid-19. The Government has boosted the generosity of the welfare system by £7.4bn in 2020-21 including through a temporary £20 a week increase in Universal Credit (UC) standard allowance and Working Tax Credit basic element, an increase in Local Housing Allowance rates and relaxation of UC minimum income floor for self-employed claimants. The Department for Work and Pensions offers HMG Payment Exception Service that allows customers access to funds via PayPoint outlets, for individuals who cannot access a bank account.
However, the Government recognises the importance of having a bank account, as it provides a way of receiving income, whether that be salary, pension, benefits or tax credit and opens up opportunities to access other financial products such as savings accounts, credit, insurance and mortgages. Throughout the Covid-19 pandemic, HM Treasury and the financial regulators have worked closely with banks, building societies and credit unions to maintain branch access for essential services, including for the purposes of opening a bank account.
The Treasury does not make assessments of the number of people who do not have a bank account. However, in 2017, the Financial Conduct Authority (FCA) published the results of the Financial Lives Survey which found that 1.3 million UK adults do not hold an account they can use for day-to-day payments and transactions.
The 9 largest personal current account providers in the UK are legally required to offer fee-free basic bank accounts to customers who do not have a bank account in the UK or who are ineligible for a bank’s standard current account. The Treasury publishes data on basic bank accounts annually. The December 2019 publication shows that in total there are nearly 7.5 million basic bank accounts open in the UK. More information can be found here:
https://www.gov.uk/government/collections/basic-bank-accounts
Asked by: Gareth Thomas (Labour (Co-op) - Harrow West)
Question to the Leader of the House:
To ask the Leader of the House, whether he plans to require his Department to provide a payroll deduction service to allow staff to save more easily with a credit union; and if he will make a statement.
Answered by Jacob Rees-Mogg
The Office of the Leader of the House of Commons is part of the Cabinet Office. I refer the hon. member to the response to his question to the Cabinet Office (121122).
Asked by: Gareth Thomas (Labour (Co-op) - Harrow West)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether he plans to require his Department and its agencies to provide a payroll deduction service to allow staff to save more easily with a credit union; and if he will make a statement.
Answered by Nadhim Zahawi
The Department is committed to providing a strong employee benefit offer to staff. At present, there are no plans to introduce access to a credit union via a payroll deduction service.
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 plans to require his Department and its agencies to provide a payroll deduction service to allow staff to save more easily with a credit union; and if he will make a statement.
Answered by Edward Argar - Minister of State (Ministry of Justice)
There are currently no plans to implement a payroll deduction service or require the Department’s agencies to implement such a service. We are continuing to plan further work to explore if payroll deductions will be implemented in the future.
Asked by: Gareth Thomas (Labour (Co-op) - Harrow West)
Question to the Home Office:
To ask the Secretary of State for the Home Department, whether she plans to require her Department and its agencies to provide a payroll deduction service to allow staff to save more easily with a credit union; and if she will make a statement.
Answered by James Brokenshire
The Home Office introduced a financial wellbeing toolkit earlier in the year and at the current time are not intending to introduce a payroll deduction service for accessing credit unions.
Asked by: Gareth Thomas (Labour (Co-op) - Harrow West)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Housing, Communities and Local Government, whether he plans to require his Department and its agencies to provide a payroll deduction service to allow staff to save more easily with a credit union; and if he will make a statement.
Answered by Kelly Tolhurst
The Department is aware that there are a number of credit union schemes on offer and that some departments have chosen to offer this facility through payroll. For a number of reasons, not least the administrative issue when employees leave the Civil Service or move between departments, this department and its executive agencies have decided not to pursue this benefit. We do however encourage our employees to make use of other Civil Service wide opportunities such as the Charity for Civil Servants ‘Money Matters’ service and the Department’s Employee Assistance provider who are available to aid in financial management and provide advice where required.
Asked by: Gareth Thomas (Labour (Co-op) - Harrow West)
Question to the Ministry of Justice:
To ask the Secretary of State for Justice, whether he plans to require his Department and its agencies to provide a payroll deduction service to allow staff to save more easily with a credit union; and if he will make a statement.
Answered by Chris Philp - Minister of State (Home Office)
The Ministry of Justice does not actively promote the use of Credit Unions to staff.
However, any promotion of credit union schemes is generally publicised by the Trade Unions for staff to access.
Although the Ministry does not currently provide such a facility, it does offer financial wellbeing support and advice, as part of its wider employee benefits offer to staff and will continue to explore options to support staff and raise awareness of financial wellbeing.
Asked by: Gareth Thomas (Labour (Co-op) - Harrow West)
Question to the Northern Ireland Office:
To ask the Secretary of State for Northern Ireland, whether he plans to require his Department and its agencies to provide a payroll deduction service to allow staff to save more easily with a credit union; and if he will make a statement.
Answered by Robin Walker
The Northern Ireland Office’s HR services, including payroll, are provided by the Ministry of Justice (MOJ). MOJ does not currently offer the facility to allow staff to join a Credit Union through payroll deductions.
Asked by: Gareth Thomas (Labour (Co-op) - Harrow West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to require the (a) Prudential Regulation Authority and (b) Financial conduct Authority to provide a payroll deduction service to allow staff to save more easily with a credit union; and if he will make a statement.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government recognises the vital role credit unions play in the financial wellbeing of their communities, providing an ethical home for their members’ savings, and affordable loans to those who may otherwise have to resort to high-cost lenders.
The legislative framework provides for the regulators to be operationally independent from Government, and HMT has no role in setting employee policies.
Asked by: Gareth Thomas (Labour (Co-op) - Harrow West)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, whether he plans to require his Department and its agencies to provide a payroll deduction service to allow staff to save more easily with a credit union; and if he will make a statement.
Answered by Victoria Prentis - Attorney General
Defra does not currently have the facility for employees to join a credit union through payroll deductions. Staff can make arrangements to contribute to a credit union via direct debit.
The department is currently investigating options for updating the employee benefits offer for staff, including the potential for payroll deducted savings and affordable borrowing through credit unions.