Asked by: Lyn Brown (Labour - West Ham)
Question to the Ministry of Justice:
To ask the Secretary of State for Justice, with reference to the report, A thematic review of work to prepare for the unification of probation services, published by Her Majesty’s Inspectorate of Probation in May 2021, on what date each contract for day one rehabilitation support services commissioned through the Dynamic Framework in (a) education, (b) training and employment, (c) accommodation, (d) women’s, (e) personal wellbeing, (f) discretionary dependency and recovery and (g) discretionary finance, benefit and debt services was finalised for (i) each English region and (ii) Wales.
Answered by Alex Chalk - Lord Chancellor and Secretary of State for Justice
Contracts for delivery of Education, Training & Employment, Accommodation, Personal Wellbeing, and Women’s services have been awarded in Wales and in 10 out of 11 probation regions through four waves of procurement activity over the last 9 months.
This initial range of services has been commissioned nationally. After probation services are unified on 26 June 2021, commissioning responsibility will move to a regional level and Regional Probation Directors will decide how and when they wish to commission Dependency & Recovery and Finance, Benefit & Debt services.
In Greater Manchester, we are jointly commissioning with the Combined Authority, and the suite of contracts will be awarded in the coming weeks.
Asked by: Nick Fletcher (Conservative - Don Valley)
Question to the Department for Education:
What recent assessment his Department has made of the potential merits of educating children on financial responsibility.
Answered by Nick Gibb
Economic and financial education are important parts of a broad and balanced curriculum and provide the essential knowledge to ensure that young people are prepared to manage their money well, make sound financial decisions and know where to seek further information when needed.
Pupils currently receive financial education through the maths and citizenship curricula, both subjects are in the National Curriculum.
Finance education as part of the citizenship curriculum can be taught at all key stages. The curriculum seeks to develop young people’s financial awareness and skills by helping them to look after their money and realise that future wants and needs may be met through saving. This is built on at secondary school to cover income and expenditure, credit and debt, insurance, savings and pensions, financial products and services, and how public money is raised and spent.
The Department has introduced a rigorous mathematics curriculum, which provides pupils with the knowledge and skills to make important financial decisions. In the primary mathematics curriculum, there is a strong emphasis on arithmetical knowledge; this knowledge is vital, as a strong understanding of numeracy will underpin pupils’ ability to manage budgets and money. There is also specific content about financial education, including calculations with money.
Schools are also free to include the teaching of financial education in their non-statutory personal, social, health and economic (PSHE) provision if they wish, drawing on the PSHE Association’s non-statutory programme of study.
We trust schools to use their professional judgement and understanding of their pupils to develop the right teaching approach for their particular school, drawing on the expertise of subject associations and organisations.
The Department continues to work closely with the Money and Pensions Service and other stakeholders such as Her Majesty’s Treasury, to consider what can be learned from a range of external initiatives and whether there is scope to provide further support for the teaching of financial education in schools.
Asked by: Carla Lockhart (Democratic Unionist Party - Upper Bann)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will consider introducing a personal loan scheme similar to the Bounce Back Scheme to provide people in debt with a low interest route to financial wellbeing in the context of increasing household debt levels as a result of the covid-19 outbreak.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
While the total amount of outstanding lending to individuals has increased by 0.9% since February 2020. The growth rate was below pre-pandemic levels and has mostly been driven by an increase in lending for house purchases. Since February 2020, the amount of outstanding consumer credit has fallen by 13.2%.
To support households that have been affected by Covid-19, we have put in place unprecedented support – including the Coronavirus Job Retention Scheme, the Self-Employment Income Support Scheme, and a package of welfare measures on which we spent an additional £7.4 billion in the 2020-21 financial year.
We have also taken specific action to support those in debt or in need of affordable credit as a result of Covid-19. For those facing temporary payment difficulties as a result of the pandemic, we worked with the FCA to introduce mortgage and consumer credit payment holidays. The Government has also agreed to maintain record levels of debt advice funding for the Money and Pension Service in 2021-22. To support access to affordable credit, since 2019, the Government has allocated £96 million of dormant assets funding to Fair4All Finance. Fair4All Finance was founded to improve the financial wellbeing of those who are financially vulnerable through fair and affordable financial products and services.
With respect to setting up a loan scheme, at Budget, HM Treasury announced it would provide up to £3.8 million of funding to deliver a pilot No-Interest Loans Scheme. The scheme will support vulnerable consumers who would benefit from affordable rather than high-cost credit to meet unexpected costs.
Asked by: Beth Winter (Labour - Cynon Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the level of personal debt due to the covid-19 outbreak in (a) Cynon Valley, (b) Rhondda Cynon Taf and (c) Wales.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Data on levels of over-indebtedness in Cynon Valley, Rhondda Cynon Taf and Wales was last published in 2018 by the Money and Pensions Service (MaPS). MaPS is currently completing a review of its measure for need for debt advice and will publish the outcome and latest data later in 2021.
The Government has delivered unprecedented support for living standards during this challenging time, protecting livelihoods with the Self-Employment Income Support Scheme (SEISS), the Coronavirus Job Retention Scheme (CJRS), and temporary welfare measures.
The Government will extend the CJRS for a further five months from May until the end of September 2021. Furloughed workers in the UK will continue to receive 80% of their current salary for hours not worked, up to £2500 per month. The scheme will be extended on current terms – with no additional employer contributions – until the end of June 2021. The SEISS will also continue until September, with a fourth and a final fifth grant.
At Budget 2021, the Government also announced a six-month extension to the temporary £20 per week uplift to the Universal Credit (UC) standard allowance, well beyond the expected end of restrictions and reopening of the economy. The Government has also announced similar support for eligible Working Tax Credit (WTC) claimants.
The Government is also maintaining the increase to Local Housing Allowance rates for UC and Housing Benefit in cash terms in 2021-22, an increase which is worth an extra £600 on average in 2020-21 for over 1.5 million households.
To help people in problem debt get their finances back on track, an extra £37.8 million support package has been made available to debt advice providers this financial year (2020-21), bringing this year's budget for free debt advice in England to over £100 million. Delivery of debt advice is a devolved matter and this additional funding was matched for the devolved administrations, resulting in an extra combined £5.9 million that was made available to Scotland, Wales and Northern Ireland.
Last year, the Government also announced the immediate release of £65 million dormant assets funding to Fair4All Finance, an independent organisation that has been founded to support the financial wellbeing of people in vulnerable circumstances. The funding is used to increase access to fair, affordable and appropriate financial products and services for those in financial difficulties
From May, the Breathing Space scheme will offer people in problem debt a pause of up to 60 days on most enforcement action, interest, fees and charges, and will encourage them to seek professional debt advice.
Asked by: Lord German (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the increase in personal debt by individuals who have lost their jobs during the COVID-19 pandemic.
Answered by Lord Agnew of Oulton
The Government works closely with the Money and Pensions Service to monitor financial difficulty through an annual survey and notes the Financial Conduct Authority’s biennial Financial Lives Survey.
The Government recognises that some people are struggling with their finances at this challenging time. To help people in problem debt get their finances back on track, an extra £37.8 million support package has been made available to debt advice providers this financial year, bringing this year's budget for free debt advice in England to over £100 million.
In May 2020, the Government announced the immediate release of £65 million of dormant assets funding to Fair4All Finance, an independent organisation that has been founded to support the financial wellbeing of people in vulnerable circumstances. The funding is used to increase access to fair, affordable and appropriate financial products and services for those in financial difficulties.
From May 2021, the Breathing Space scheme will offer people in problem debt a pause of up to 60 days on most enforcement action, interest, fees and charges, and will encourage them to seek professional debt advice.
The Government has delivered unprecedented support for living standards during this challenging time, protecting livelihoods with the Self-Employment Income Support Scheme (SEISS), the Coronavirus Job Retention Scheme (CJRS), and temporary welfare measures.
The Government has extended the CJRS until 31 March 2021. Eligible employees will continue to receive 80% of their usual salary for hours not worked, up to a maximum of £2,500 per month.
The Government has increased the overall level of the third grant under the SEISS to 80% of average trading profits, meaning that the maximum grant available has now increased to £7,500.
The Government has provided local authorities with £500 million to support people who may struggle to meet their council tax payments this year. The Government expects that this will provide all recipients of working age local council tax support with a further reduction in their annual council tax bill of £150 this financial year.
These measures are in addition to the changes this Government has made to make the welfare system more generous, worth over £7 billion according to recent estimates by the Office for Budget Responsibility.
The Government has worked with mortgage lenders, credit providers and the Financial Conduct Authority to ensure the financial sector provides support for people across the UK to manage their finances by providing payment holidays on mortgages and consumer credit products.
The Government has also delivered protections for renters, including an extension to the ban on bailiff evictions for all but the most egregious cases until at least 21 February 2021, with measures kept under review.
Asked by: Grant Shapps (Conservative - Welwyn Hatfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make it his policy to delay the loan charge settlement day until after the conclusion of the review of that charge.
Answered by Mel Stride - Secretary of State for Work and Pensions
The Government chose to accept section 95 during the passage of the Finance Bill introduced by a cross party group. As set out by section 95, the Government will lay a report no later than 30 March 2019. The report will review the effect of changes made to the time limits for assessment where tax loss arises in relation to offshore tax, and compare these with other legislation including the charge on disguised remuneration loans.
The charge on disguised remuneration loans remains unchanged as a result of the requirement for a report, and will apply to disguised remuneration loan balances on 5 April 2019.
The charge on disguised remuneration (DR) loans will apply to outstanding DR loan balances on 5 April 2019. It is targeted at artificial tax avoidance schemes where earnings were paid in the form of non-repayable loans made by a third party. The loans are provided on terms that mean they are not repaid in practice, so they are no different to normal income and are, and always have been, taxable.
The Government estimates that up to 50,000 individuals will be affected by the 2019 loan charge. Information is not held at constituency, borough or regional level.
Since the announcement of the 2019 loan charge at Budget 2016, HMRC has now agreed settlements on disguised remuneration schemes with employers and individuals totalling over £1 billion. Pay As You Earn (PAYE) liabilities fall on the employer in the first instance. The charge on DR loans does not change this principle and the employee will only be liable where the amount cannot reasonably be collected from the employer, such as where the employer is offshore or no longer exists. Around 85% of the settlement yield since 2016 is from employers, with less than 15% from individuals. HMRC will never force somebody to sell their main home to pay for their DR debt, or the loan charge.
HMRC is working hard to help individuals get out of avoidance for good and offer manageable and sustainable payment plans wherever possible. It carefully considers each case and there is no maximum limit on how long a customer can be given to pay what they owe. HMRC considers a customer’s ability to pay on a case by case basis and decisions are based on each individual’s personal circumstances.
HMRC has simplified the process for those who want to settle their use of DR schemes before the loan charge arises. DR scheme users who currently have an income of less than £50,000 and are no longer engaging in tax avoidance can automatically agree a payment plan of up to five years without the need to give HMRC detailed information about their income and assets. This arrangement has been extended to 7 years for scheme users who have an income of less than £30,000.
Anybody who is worried about being able to pay what they owe should get in touch with HMRC as soon as possible. They have a number of ways to help those who are genuinely unable to make a full payment of tax on time, for example, by arranging payments by instalments.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what steps the Government is taking to reduce the indebtedness of people aged 18 to 25.
Answered by Harriett Baldwin
The government is committed to ensuring that young people can access the support they need in order to make informed financial decisions and avoid problem debt.
To ensure that young people leave school with an understanding of personal finance, financial literacy was made part of the secondary school National Curriculum in September 2014; and the mathematics curriculum has also been changed to include topics on financial decisions. This means that for the first time, young people now learn about the importance of budgeting, sound management of money, credit and debt, as well as understanding different financial services and products.
The government set up the Money Advice Service (MAS) in 2010 to enhance consumers’ understanding and knowledge of financial matters. MAS provides a single point of debt advice for consumers, including people aged 18-25, and allows those facing problems with debt to obtain free and impartial money advice. MAS also recently launched their nationwide Financial Capability Strategy, which will specifically consider how the needs of young people should inform provision going forward.
The government is currently consulting on how the provision of public financial guidance could be made more effective for consumers.
Asked by: Adam Afriyie (Conservative - Windsor)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what steps his Department has taken to boost the growth of the financial technology industry.
Answered by Andrea Leadsom - Parliamentary Under-Secretary (Department of Health and Social Care)
As part of our long term economic plan, the Government is committed to supporting the continued growth of the Financial Technology (FinTech) sector. The Government has taken a number of steps to achieve this, including:
Creating a new Payments Systems Regulator (PSR), which will ensure that smaller banks and alternative providers of finance – including FinTechs – can access payment systems in a fair and transparent way, and thereby contributing to a fairer and more competitive payments industry. The PSR will open its doors on 1 April this year.
Committing to additional funding of £100m to the British Business Bank’s Investment Programme – including funding for FinTech.
Launching the GO-Science’s Blackett Review on FinTech Futures, which looks ahead 10 years to the future and identify what the technologies, enablers and barriers are that will shape the future of the UK FinTech sector.
Naming the big banks that will have to share credit data, and refer on SMEs they reject for finance – helping alternative finance providers, including FinTech firms, to lend more effectively;
Supporting the development of the peer-to-peer lending and crowdfunding market: consulting on ISA eligibility for crowdfunded debt securities; announcing we will review EU regulations standing in the way of P2P institutional lending; and creating a bespoke regulatory framework for P2P.
Most recently at budget 2015, we announced a further package of measures to build on the government’s wide-reaching programme of reform to drive competition in banking and FinTech, including announcing that:
The Government intends to apply anti-money laundering regulation to digital currency exchanges in the UK, launch a new research initiative into digital currency technology, with £10 million additional funding, and work with the British Standards Institution and the digital currency industry to develop voluntary standards for consumer protection.
Gocompare will launch the first personal current account comparison tool making use of customers’ bank midata releases on 26 March 2015.
The Government will work with the banks and FinTech firms to develop an open API (Application Programming Interface) standard for banks, by the end of the year.
the Financial Conduct Authority’s (FCA) ‘Project Innovate’ will work with HMT and the Prudential Regulation Authority (PRA) to investigate the feasibility of developing a regulatory ‘sandbox’ for financial services innovators
Innovate Finance has agreed to deliver its FinTech regional strategy through a series of local partnerships; the first partnership has already been established in Leeds, and further partnerships will be established in Manchester and Edinburgh by April, and in Newcastle, Bristol and other centres before the end of the year.
Asked by: Paul Maynard (Conservative - Blackpool North and Cleveleys)
Question to the Department for Education:
To ask the Secretary of State for Education, what steps he has taken to include financial capability education in the national curriculum; and what guidance his Department has issued on such education.
Answered by Elizabeth Truss
The new mathematics curriculum will ensure that all young people leave school with an understanding of the mathematics skills needed for personal finance.
For the first time financial literacy will also be a compulsory part of citizenship for 11- to 16-year-olds from September 2014. Pupils will learn the importance of budgeting, sound management of money, credit and debt, as well as understanding of different financial services and products.
The new programmes of study for mathematics and citizenship make it clear what pupils should learn, including developing their use of formal mathematical knowledge to interpret and solve problems including financial mathematics.