Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the implications for his policies of trends in the level of interest rates charged by financial companies.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
High inflation is the greatest economic challenge that we must address, which is why the Government has made it a priority to halve inflation this year, on the path back to the 2% target. Monetary policy, including all decisions on Bank Rate, is the responsibility of the independent Monetary Policy Committee at the Bank of England, and they have the Government’s full support as they take action to return inflation back to target.
MPC decisions over Bank Rate guide commercial banks’ decisions over the retail interest rates they charge on loans and pay on deposits. However, banks also make commercial judgements that influence the degree of pass‐through from changes in Bank Rate into retail interest rates, with conditions in financial markets and in the banking sector also influencing interest rates paid on deposits or charged for lending.
Nevertheless, we recognise this will be a concerning time for mortgage borrowers, particularly those who are due to come to the end of their existing deal in the immediate future.
Following the commitments agreed to support borrowers in December, the Chancellor met with mortgage lenders, UK Finance and the Financial Conduct Authority on 23 June. At this meeting, lenders agreed to a new Mortgage Charter to support borrowers struggling with their mortgage payments, which was published on 26 June. This sets out the standards lenders will adopt when helping their customers, including new flexibilities to help customers manage their mortgage payments over a short period. More information can be found at: https://www.gov.uk/government/publications/mortgage-charter/mortgage-charter
This is in addition to the measures the Government has already taken aimed at helping people to avoid repossession, including Support for Mortgage Interest (SMI) loans, and protection in the courts through the Pre-Action Protocol.
Asked by: Lord Allen of Kensington (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of The Mortgage Crunch report, published by the Resolution Foundation on 17 June; and what plans they have, if any, to assist mortgage holders affected by rising mortgage costs.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
The Government does not set mortgage or interest rates. The Bank Rate - which is one factor that lenders use to set mortgage and retail interest rates - is set by the Monetary Policy Committee (MPC) of the Bank of England, which is independent of Government. Commercial Banks and Building Societies also make other commercial judgements that influence the degree of pass‐through from changes in Bank Rate into mortgage and retail interest rates. The Government does not seek to intervene in these commercial decisions.
However, we recognise this will be a concerning time for mortgage holders, particularly those who are due to come to the end of their existing deal in the immediate future. The Prime Minister has been clear, the best and most important way that we can keep costs and interest rates down for people is to halve inflation, and then return it to the 2% target.
On Friday 23 June the Chancellor met with mortgage lenders, UK Finance and the FCA to discuss a new package of support for those who encounter problems keeping up with their mortgage payments. These commitments include an agreement permitting customers to switch to an interest only mortgage, or extend their mortgage term, for 6 months, after which they can switch back without a new affordability check or it affecting their credit score. Lenders also agreed borrowers won’t have their home repossessed within 12 months from a first missed payment without their consent or unless in exceptional circumstances.
If mortgage holders are concerned about making their mortgage repayment, they must speak to their lender as soon as possible. Contacting them will not affect their credit score.
The Government has also already taken a number of measures aimed at helping people to avoid repossession, including Support for Mortgage Interest (SMI) loans for those in receipt of an income-related benefit, and protection in the courts through the Pre-Action Protocol, which makes it clear that repossession must always be the last resort for lenders.
Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has held recent discussions with the banking sector on corporate and social responsibilities.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Government does not set mortgage or interest rates. The Bank Rate - which is one factor that lenders use to set mortgage and retail interest rates - is set by the Monetary Policy Committee (MPC) of the Bank of England, which is independent of Government. Commercial Banks and Building Societies also make other commercial judgements that influence the degree of pass‐through from changes in Bank Rate into mortgage and retail interest rates. The Government does not seek to intervene in these commercial decisions.
However, we recognise this will be a concerning time for mortgage holders, particularly those who are due to come to the end of their existing deal in the immediate future. The Prime Minister has been clear, the best and most important way that we can keep costs and interest rates down for people is to halve inflation, and then return it to the 2% target.
The Chancellor and I have regular meetings with banks on a range of topics, including to discuss how banks are supporting people with the rising cost of living. On Friday 23 June the Chancellor met with mortgage lenders, UK Finance and the FCA to discuss a new package of support for those who encounter problems keeping up with their mortgage payments. These commitments include an agreement permitting customers to switch to an interest only mortgage, or extend their mortgage term, for 6 months, after which they can switch back without a new affordability check or it affecting their credit score. Lenders also agreed borrowers won’t have their home repossessed within 12 months from a first missed payment without their consent or unless in exceptional circumstances.
If you are concerned about making your mortgage repayment, you must speak to your lender as soon as possible. Contacting them will not affect your credit score.
The Government has also already taken a number of measures aimed at helping people to avoid repossession, including Support for Mortgage Interest (SMI) loans for those in receipt of an income-related benefit, and protection in the courts through the Pre-Action Protocol, which makes it clear that repossession must always be the last resort for lenders.
The retail savings market currently offers a range of competitive options to savers, who can now access the highest rates in recent years on a variety of instant access and fixed-term products. I would encourage savers to explore the full range of products available in the market to find the best rates.
Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has had any recent discussions with banks on (a) the financial support provided to banks in 2008 and (b) rates for (i) savings and (ii) loans being offered by banks, in the context of rises in the cost of living.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Government does not set mortgage or interest rates. The Bank Rate - which is one factor that lenders use to set mortgage and retail interest rates - is set by the Monetary Policy Committee (MPC) of the Bank of England, which is independent of Government. Commercial Banks and Building Societies also make other commercial judgements that influence the degree of pass‐through from changes in Bank Rate into mortgage and retail interest rates. The Government does not seek to intervene in these commercial decisions.
However, we recognise this will be a concerning time for mortgage holders, particularly those who are due to come to the end of their existing deal in the immediate future. The Prime Minister has been clear, the best and most important way that we can keep costs and interest rates down for people is to halve inflation, and then return it to the 2% target.
The Chancellor and I have regular meetings with banks on a range of topics, including to discuss how banks are supporting people with the rising cost of living. On Friday 23 June the Chancellor met with mortgage lenders, UK Finance and the FCA to discuss a new package of support for those who encounter problems keeping up with their mortgage payments. These commitments include an agreement permitting customers to switch to an interest only mortgage, or extend their mortgage term, for 6 months, after which they can switch back without a new affordability check or it affecting their credit score. Lenders also agreed borrowers won’t have their home repossessed within 12 months from a first missed payment without their consent or unless in exceptional circumstances.
If you are concerned about making your mortgage repayment, you must speak to your lender as soon as possible. Contacting them will not affect your credit score.
The Government has also already taken a number of measures aimed at helping people to avoid repossession, including Support for Mortgage Interest (SMI) loans for those in receipt of an income-related benefit, and protection in the courts through the Pre-Action Protocol, which makes it clear that repossession must always be the last resort for lenders.
The retail savings market currently offers a range of competitive options to savers, who can now access the highest rates in recent years on a variety of instant access and fixed-term products. I would encourage savers to explore the full range of products available in the market to find the best rates.
Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the impact of relative changes in banks rates on (a) mortgages and loans and (b) savings.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Government does not set mortgage or interest rates. The Bank Rate - which is one factor that lenders use to set mortgage and retail interest rates - is set by the Monetary Policy Committee (MPC) of the Bank of England, which is independent of Government. Commercial Banks and Building Societies also make other commercial judgements that influence the degree of pass‐through from changes in Bank Rate into mortgage and retail interest rates. The Government does not seek to intervene in these commercial decisions.
However, we recognise this will be a concerning time for mortgage holders, particularly those who are due to come to the end of their existing deal in the immediate future. The Prime Minister has been clear, the best and most important way that we can keep costs and interest rates down for people is to halve inflation, and then return it to the 2% target.
The Chancellor and I have regular meetings with banks on a range of topics, including to discuss how banks are supporting people with the rising cost of living. On Friday 23 June the Chancellor met with mortgage lenders, UK Finance and the FCA to discuss a new package of support for those who encounter problems keeping up with their mortgage payments. These commitments include an agreement permitting customers to switch to an interest only mortgage, or extend their mortgage term, for 6 months, after which they can switch back without a new affordability check or it affecting their credit score. Lenders also agreed borrowers won’t have their home repossessed within 12 months from a first missed payment without their consent or unless in exceptional circumstances.
If you are concerned about making your mortgage repayment, you must speak to your lender as soon as possible. Contacting them will not affect your credit score.
The Government has also already taken a number of measures aimed at helping people to avoid repossession, including Support for Mortgage Interest (SMI) loans for those in receipt of an income-related benefit, and protection in the courts through the Pre-Action Protocol, which makes it clear that repossession must always be the last resort for lenders.
The retail savings market currently offers a range of competitive options to savers, who can now access the highest rates in recent years on a variety of instant access and fixed-term products. I would encourage savers to explore the full range of products available in the market to find the best rates.
Asked by: Chi Onwurah (Labour - Newcastle upon Tyne Central)
Question to the Department for Education:
To ask the Secretary of State for Education, what discussions she has had with (a) local authorities and (b) businesses in the North East on the decision to stop funding for Level 3 tourism qualifications by 2025.
Answered by Robert Halfon
The department has embarked on an ambitious technical education reform programme. We consulted several times on the reforms to seek the views on our proposed changes. In March 2019, the government launched the first stage consultation to gather views and evidence about the principles that should apply to post-16 qualifications at level 3 and below in England. The results of this consultation are available at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/928952/Review_of_post-16_qualifications_at_level_3_and_below_-_First_stage_government_response.pdf.
In July 2021, the department published its response to the second stage consultation of the review of post-16 qualifications at level 3 and below, which ran between the 23 October 2020 to 31 January 2021.The department made clear its intentions to streamline the qualifications landscape, simplify choices for students, and only fund qualifications that are high quality and lead to good progression outcomes. The response is available at: https://www.gov.uk/government/consultations/review-of-post-16-qualifications-at-level-3-second-stage.
The changes to post-16 qualifications at level 3 and below are designed to ensure that our qualifications system provides a ladder of opportunity for young people from all backgrounds. The department wants as many people as possible to undertake world class A levels and T Levels, which evidence shows provide the best foundation from which to progress, either into higher education, or skilled employment.
Data shows that, in the following year, of the approximately 3,100 16-18 students who completed a level 3 qualification in Travel and Tourism in 2018/19:
This shows mixed progression outcomes for these qualifications. Specifying that newly developed travel and tourism-related qualifications must be based on employer-designed, approved occupational standards at level 3 will ensure that students gain the knowledge, skills, and behaviours employers in the travel and tourism industries need, leading to better and more consistent progression outcomes for young people.
The department will continue to fund travel and tourism qualifications at level 3 beyond 2025. Existing travel and tourism qualifications will remain funded until 31 July 2026, after which qualifications approved for funding in travel and tourism will need to be mapped against one of the relevant occupational standards at level 3 for technical qualifications. Further information can be found here: https://occupational-maps.instituteforapprenticeships.org/.
For future qualifications, the department is encouraging awarding organisations to work with schools, colleges and employers to develop new travel and tourism-focused technical qualifications at level 3 that support young people to enter employment or further technical study where that is what they want to do.
Asked by: Chi Onwurah (Labour - Newcastle upon Tyne Central)
Question to the Department for Education:
To ask the Secretary of State for Education, for what reason level 3 travel and tourism qualifications will not be funded after 2025; and what assessment her Department has made of the potential impact of this decision on (a) the North East and (b) Newcastle.
Answered by Robert Halfon
The department has embarked on a technical education reform programme. The changes to post-16 qualifications at level 3 and below are designed to ensure that our qualifications system provides opportunity for young people from all backgrounds. We want as many people as possible to undertake world class A levels and T Levels, as evidence shows these qualifications provide the best foundation from which to progress either into higher education (HE), or skilled employment.
Data shows that, in the following year, of the approximately 3,100 16-18 students who completed a level 3 qualification in Travel and Tourism in 2018/19:
This shows mixed progression outcomes for these qualifications. Specifying that newly developed travel and tourism-related qualifications must be based on employer-designed, approved occupational standards at level 3 will ensure that students gain the knowledge, skills, and behaviours employers in the travel and tourism industries need, leading to better and more consistent progression outcomes for young people.
The department will continue to fund travel and tourism qualifications at level 3 beyond 2025. Existing travel and tourism qualifications will remain funded until 31 July 2026, after which qualifications approved for funding in travel and tourism will need to be mapped against one of the relevant occupational standards at level 3 for technical qualifications. Further information can be accessed at: https://occupational-maps.instituteforapprenticeships.org/.
For future qualifications, the department is encouraging awarding organisations to work with schools, colleges and employers to develop new travel and tourism focused technical qualifications at level 3 which support young people to enter employment or further technical study.
Asked by: Rachael Maskell (Labour (Co-op) - York Central)
Question to the Department of Health and Social Care:
To ask the Secretary of State for Health and Social Care, what assessment he has made of trends in the illegal sale of vapes (a) smuggled in through the UK borders and (b) via internet sales; and whether he has made an assessment of the impact of the illegal sale of vapes on his public health strategy.
Answered by Neil O'Brien
On 11 April 2023, we launched a call for evidence to identify opportunities to reduce youth vaping. The call for evidence explores issues related to regulatory compliance, including those sold online and in retail outlets. Once this closes, this year, on 6 June, the Government will assess a range of options based on the evidence provided, including potential future changes to vaping policy and regulation. The Government continues to provide funding to local authorities in support of local trading standards activity. This includes enforcement of non-compliant and/or illegal products that may pose a risk to public health.
We recently announced £3 million of additional funding for a new national illicit vaping enforcement unit to tackle illicit and underage vape sales across the country. This will help us to better understand trends related to illegal vaping, ascertain what is imported at United Kingdom borders and allow us to assess the impact of the illegal sale of vapes on public health.
Asked by: Rachael Maskell (Labour (Co-op) - York Central)
Question to the Department of Health and Social Care:
To ask the Secretary of State for Health and Social Care, whether he plans to take steps to ensure that vaping devices are only sold at regulated outlets.
Answered by Neil O'Brien
On 11 April 2023, we launched a call for evidence to identify opportunities to reduce youth vaping. The call for evidence explores issues related to regulatory compliance, including those sold online and in retail outlets. Once this closes, this year, on 6 June, the Government will assess a range of options based on the evidence provided, including potential future changes to vaping policy and regulation. The Government continues to provide funding to local authorities in support of local trading standards activity. This includes enforcement of non-compliant and/or illegal products that may pose a risk to public health.
We recently announced £3 million of additional funding for a new national illicit vaping enforcement unit to tackle illicit and underage vape sales across the country. This will help us to better understand trends related to illegal vaping, ascertain what is imported at United Kingdom borders and allow us to assess the impact of the illegal sale of vapes on public health.
Asked by: Danny Kruger (Conservative - Devizes)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential impact of the introduction of a central bank digital currency on retail funding for commercial banks.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
In February 2023, HM Treasury and the Bank of England published a joint consultation on a UK central bank digital currency (CBDC). The consultation noted that a UK CBDC, or ‘digital pound’, is likely to be needed in the future. However, a final decision has not yet been made and will be informed by this consultation and future work.
As part of this consultation period, HM Treasury and the Bank of England will carefully consider how the digital pound could impact the commercial banking sector, as well as any potential deposit outflows and any substantial shift in retail banks’ funding models.
A response to this consultation will be issued in due course.