Asked by: Lord Jackson of Peterborough (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what discussions they have with the Competition and Markets Authority on the recent increases in car insurance premiums and access to car insurance for motorists on lower incomes.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
Treasury Ministers and officials have regular meetings with a wide variety of organisations in the public and private sectors, including the financial services regulators, on an ongoing basis.
The Government does not prescribe the terms, conditions or price that insurance companies set when offering insurance. Insurers make commercial decisions about the pricing of insurance following their assessment of the relevant risks. The Government does not intervene in these decisions as this could damage competition in the market.
The Financial Conduct Authority (FCA) is the independent regulator responsible for supervising the insurance industry. Alongside the Competition and Markets Authority, the FCA can enforce against breaches of competition law for the provision of financial services.
The FCA also requires firms to ensure their products offer fair value (i.e. if the price a consumer pays for a product or service is reasonable compared to the overall benefits they can expect to receive). The FCA has been clear that it will be monitoring firms to ensure they are providing products that are fair value, and, where necessary, it will take action.
Asked by: Gregory Campbell (Democratic Unionist Party - East Londonderry)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will hold discussions with insurance companies on trends in the level of car insurance premia.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
Treasury Ministers and officials have regular meetings with a wide variety of organisations in the public and private sectors, including financial services firms, on an ongoing basis.
The Government does not prescribe the terms, conditions or price that insurance companies set when offering insurance. Insurers make commercial decisions about the pricing of insurance following their assessment of the relevant risks. The Government does not intervene in these decisions as this could damage competition in the market.
The Financial Conduct Authority (FCA) is the independent regulator responsible for supervising the insurance industry. The FCA requires firms to ensure their products offer fair value (i.e. if the price a consumer pays for a product or service is reasonable compared to the overall benefits they can expect to receive). The FCA has been clear that it will be monitoring firms to ensure they are providing products that are fair value, and, where necessary, it will take action.
Asked by: Mark Pritchard (Conservative - The Wrekin)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will hold discussions with the Financial Conduct Authority on the additional costs to consumers of paying (a) vehicle and (b) household insurance in monthly instalments; and if he will make an assessment of the potential impact of such costs on people on lower incomes.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
Treasury Ministers and officials have regular meetings with a wide variety of organisations in the public and private sectors, including the financial services regulators, on an ongoing basis.
The Government does not prescribe the terms, conditions or price that insurance companies set when offering insurance. Insurers make commercial decisions about the pricing of insurance following their assessment of the relevant risks. The Government does not intervene in these decisions as this could damage competition in the market.
The Financial Conduct Authority (FCA) is the independent regulator responsible for supervising the insurance industry. The FCA requires firms to ensure their products offer fair value (i.e. if the price a consumer pays for a product or service is reasonable compared to the overall benefits they can expect to receive). The FCA has been clear that it will be monitoring firms to ensure they are providing products that are fair value, and, where necessary, it will take action.
Asked by: Claire Hanna (Social Democratic & Labour Party - Belfast South)
Question to the Home Office:
To ask the Secretary of State for the Home Department, if he will make an assessment of the potential merits of removing the immigration health surcharge for people who already (a) work and (b) pay taxes in the UK.
Answered by Tom Pursglove - Minister of State (Minister for Legal Migration and Delivery)
The Government has no plans to remove the Immigration Health Surcharge (IHS) for temporary migrants who work and pay taxes in the UK.
It is right those granted temporary immigration permission for more than six months should contribute to the sustainability of our NHS. Having paid the IHS, temporary migrants can access the NHS as soon as they arrive in the UK and will only be charged for services that a permanent resident would also pay for, such as prescription charges in England.
Although some temporary migrants will pay tax and National Insurance contributions after they start work in the UK, they will not on average have made the same financial contribution to the NHS which most UK nationals and permanent residents have made, or will make, over the course of their working lives. It is an individual’s immigration status, not their tax and National Insurance contributions, which governs their access to the NHS.
Asked by: Stephen Doughty (Labour (Co-op) - Cardiff South and Penarth)
Question to the Foreign, Commonwealth & Development Office:
To ask the Minister of State, Foreign, Commonwealth and Development Office, what assessment he has made of the involvement of UK-based (a) insurers, (b) insurance markets and (c) shipping companies in the provision of services for the (i) export of goods to and (ii) import of goods from Russia.
Answered by Anne-Marie Trevelyan - Minister of State (Foreign, Commonwealth and Development Office)
The UK has introduced a comprehensive set of import and export restrictions on Russia. This has led to a 94 per cent fall in Russian imports into the UK and a 74 per cent fall in UK exports to Russia. Over £20 billion of UK-Russia bilateral trade (from 2021 figures) is now under full or partial sanction.
As well as banning the import and export of goods and technology, UK nationals and companies are prohibited from providing ancillary services which enable their trade, including financial services and funds which includes insurance, brokering and technical assistance.
The UK, alongside the G7 and Australia, has also banned the import of Russian oil and oil products. This substantially reduces the size of the global market for Russian oil and oil product exports.
Importantly, we have also created the Oil Price Cap which operates globally by prohibiting UK and G7+ firms from providing services such as shipping, insurance, and finance to facilitate the maritime transport of Russian oil and oil products to third countries, unless the oil was purchased from Russia at or below the cap. By limiting the price of Russian oil and oil products exported to third countries rather than restricting maritime services altogether, we restrict the revenues flowing to the Russian state and undermine Putin's ability to fund his illegal war in Ukraine, while still enabling oil to flow in a tight market and ensuring that third countries can continue to secure affordable oil.
Asked by: Kenny MacAskill (Alba Party - East Lothian)
Question to the Department for Transport:
To ask the Secretary of State for Transport, whether he has made an assessment of the potential merits of introducing (a) social tariffs and (b) other forms of financial support for (i) public transport and (ii) car insurance.
Answered by Guy Opperman - Parliamentary Under-Secretary (Department for Transport)
The Government is taking action to ensure that public transport is affordable for people across the country. We have made significant investments in public transport to help make services more frequent, more reliable, cheaper and easier to use.
In January 2023, the Department introduced the £2 cap on single bus fares in England outside of London, which has been extended until the end of 2024. The increase to most regulated rail fares will be capped at 4.9% instead of the July 2023 RPI figure (9%) which has historically been used to calculate fares changes. This is set to come into effect on 3 March 2024, so passengers benefit from cheaper fares for longer. A range of railcards is also available which offers discounts to particular groups.
My officials regularly liaise with representatives of the motor insurance industry on a range of issues. However, it is the responsibility of individual motor insurers to set their premiums and the terms and conditions of their policies, and the Government does not intervene in, or seek to control, the market.
The Department also undertakes research to help inform our policy making and gives due consideration to the travel needs, behaviours and experiences of different groups.
Asked by: Lord Empey (Ulster Unionist Party - Life peer)
Question to the Foreign, Commonwealth & Development Office:
To ask His Majesty's Government whether UK-based brokers are facilitating the insurance of vessels carrying Russian oil worldwide; and if so, whether they are planning to extend sanction regulations to prevent the Putin regime from funding its aggression in Ukraine assisted by UK based or controlled entities.
Answered by Lord Ahmad of Wimbledon - Minister of State (Foreign, Commonwealth and Development Office)
The oil price cap, implemented by a Coalition encompassing the UK alongside the G7 and Australia, operates globally by prohibiting UK and Coalition firms from providing services such as shipping, insurance and finance to facilitate the maritime transport of Russian oil and oil products, unless the oil was purchased at or below the price cap level. The UK has implemented a strong enforcement approach focused on prohibition, with the Office of Financial Sanctions Implementation (OFSI) responsible for civil enforcement, and HMRC and the National Crime Agency jointly considering cases which may be appropriate for criminal prosecution. The Coalition has recently acted jointly to tighten price cap compliance rules and reserves the right to take further action to ensure its effectiveness if needed.
Asked by: Allan Dorans (Scottish National Party - Ayr, Carrick and Cumnock)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions he has had with the Financial Conduct Authority on the regulation of car insurance premiums.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
Treasury Ministers and officials have meetings with a wide variety of organisations in the public and private sectors, including the financial services regulators, on an ongoing basis.
Insurers make commercial decisions about the pricing of insurance based on their assessment on the likelihood and expected cost of a claim. The Government does not intervene in these commercial decisions by insurers as this could damage competition in the market.
The Financial Conduct Authority (FCA) is the independent regulator and responsible for supervising the insurance industry. The FCA have introduced several reforms, including the Consumer Duty rules, to ensure consumers are treated fairly in regard to pricing.
Asked by: Emma Hardy (Labour - Kingston upon Hull West and Hessle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has had discussions with the Financial Conduct Authority on monthly car insurance premiums.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
Treasury Ministers and officials have meetings with a wide variety of organisations in the public and private sectors, including the financial services regulators, on an ongoing basis.
Insurers make commercial decisions about the pricing of insurance based on their assessment on the likelihood and expected cost of a claim. The Government does not intervene in these commercial decisions by insurers as this could damage competition in the market.
The Financial Conduct Authority (FCA) is the independent regulator and responsible for supervising the insurance industry. The FCA have introduced several reforms, including the Consumer Duty rules, to ensure consumers are treated fairly in regard to pricing.
Asked by: Julian Knight (Independent - Solihull)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of exempting individuals from national insurance contributions if they choose not to access (a) social security services and (b) the NHS.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
The National Insurance scheme operates on a pay-as-you-go basis, where today’s contributions pay for today’s benefits. The underpinning principle is not of an individual paying for their own benefits, but rather a system where those in work, employers and voluntary payers pool their resources to meet the claims of all of those who are eligible. Within the scheme, a person’s financial contributions reflect their ability to pay, rather than any likelihood of future entitlement. The proposal to exempt individuals from paying National Insurance contributions would run counter to this principle.