Asked by: Drew Hendry (Scottish National Party - Inverness, Nairn, Badenoch and Strathspey)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has had recent discussions with the Competition and Market Authority on the use of exclusive jurisdiction clauses by insurance companies.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
Insurers make commercial decisions about the terms on which they will offer cover following an assessment of the relevant risks. The Government does not intend to intervene in these commercial decisions by insurers as this could damage competition in the market.
However, insurers must treat customers fairly and are required to do so under the Financial Conduct Authority’s (FCA) rules. The FCA is an independent body responsible for regulating and supervising the financial services industry, including insurance firms. The FCA, as the independent regulator, also has a statutory objective to promote effective competition in the interests of consumers. The FCA work towards that objective, as far as the work is compatible with advancing their other objectives.
Asked by: Mark Logan (Conservative - Bolton North East)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Levelling Up, Housing and Communities, whether he has held recent discussions with the Association for British Insurers on the provision of insurance for buildings deemed at risk of fire.
Answered by Lee Rowley - Minister of State (Minister for Housing)
I have met both the British Insurance Brokers’ Association and the Association of British Insurers, along with companies providing services in these sectors, on multiple occasions during 2023 to highlight the concerns of leaseholders regarding excess insurance costs and the need to make progress in this important area.
The Government is committed to making sure that buildings insurance costs are fair and transparent, and that leaseholders have confidence in challenging costs where necessary. Insurers must price risk in a responsible manner. It is clear from the Financial Conduct Authority reports into this market that leaseholders have not always been getting the service that they should, and this must change.
Regarding broking fees, in April 2023 the Financial Conduct Authority (FCA) consulted on giving leaseholders rights under their fair value rules and increasing requirements on the disclosure of information to leaseholders by brokers, and I strongly welcome its initiatives in this direction. The British Insurance Brokers' Association have already confirmed that they are in the process of testing new guidance for their members on how to comply with FCA fair value rules.
The Association of British Insurers has been developing a scheme for buildings with fire safety risks experiencing particularly high premiums for a significant period of time. I continue to highlight the Government’s clear expectation that this be delivered as soon as possible.
Asked by: Mark Logan (Conservative - Bolton North East)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Levelling Up, Housing and Communities, if she will hold discussions with the British Insurance Brokers' Association on the potential merits of producing industry guidance for meeting fair value rules to ensure that leaseholders benefit from such rules.
Answered by Lee Rowley - Minister of State (Minister for Housing)
I have met both the British Insurance Brokers’ Association and the Association of British Insurers, along with companies providing services in these sectors, on multiple occasions during 2023 to highlight the concerns of leaseholders regarding excess insurance costs and the need to make progress in this important area.
The Government is committed to making sure that buildings insurance costs are fair and transparent, and that leaseholders have confidence in challenging costs where necessary. Insurers must price risk in a responsible manner. It is clear from the Financial Conduct Authority reports into this market that leaseholders have not always been getting the service that they should, and this must change.
Regarding broking fees, in April 2023 the Financial Conduct Authority (FCA) consulted on giving leaseholders rights under their fair value rules and increasing requirements on the disclosure of information to leaseholders by brokers, and I strongly welcome its initiatives in this direction. The British Insurance Brokers' Association have already confirmed that they are in the process of testing new guidance for their members on how to comply with FCA fair value rules.
The Association of British Insurers has been developing a scheme for buildings with fire safety risks experiencing particularly high premiums for a significant period of time. I continue to highlight the Government’s clear expectation that this be delivered as soon as possible.
Asked by: Mark Pritchard (Conservative - The Wrekin)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will launch a consumer review of the car insurance market for the purposes of understanding the (a) adequacy of levels of competition and (b) comparative pricing structures between companies.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The motor insurance market has many providers offering a variety of insurance products to suit the needs of customers. The Financial Conduct Authority (FCA), as the independent regulator for financial services, has a statutory objective to promote competition in the interests of consumers, and, working closely with the Competition and Markets Authority, can enforce against breaches of competition law. The FCA have also introduced several reforms, including the Consumer Duty rules, to ensure consumers are treated fairly in regard to pricing.
Insurers make commercial decisions about the terms, conditions or price that they set when offering insurance, including motor insurance. The Government does not intervene in these commercial decisions by insurers as this could damage competition in the market.
Asked by: Rachael Maskell (Labour (Co-op) - York Central)
Question to the Foreign, Commonwealth & Development Office:
To ask the Secretary of State for Foreign, Commonwealth and Development Affairs, what steps his Department is taking to use aid funding to prevent natural disasters causing loss of life and infrastructure.
Answered by Andrew Mitchell - Minister of State (Foreign, Commonwealth and Development Office) (Minister for Development)
The UK has a strong record in disaster response and preparedness and is committed to transforming how we anticipate and prevent crises, including though our support for the global Coalition for Disaster Resilient Infrastructure. In the Caribbean, we provide grant finance for resilient infrastructure, as well as backing a new insurance scheme to protect critical water and sanitation infrastructure. We work closely with partners on developing and advocating for better Early Warning Systems to protect communities at risk, as well as providing technical and financial support to strengthen meteorological services, regional climate centres and risk assessment in Africa and Asia.
Asked by: John McDonnell (Labour - Hayes and Harlington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential impact of a UK central bank digital currency on financial exclusion.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Government is committed to promoting financial inclusion, meaning that individuals, regardless of their background or income, have access to useful and affordable financial products and services. These include banking, payment services, credit, insurance, and the use of financial technology.
The consultation on the digital pound closed on 30 June, and we are now assessing the responses. We will publish a consultation response publication in due course. A digital pound could help financial exclusion. Financial inclusion and the needs of vulnerable people will be considered by HM Treasury and the Bank of England at every stage.
Asked by: Emma Hardy (Labour - Kingston upon Hull West and Hessle)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, whether she is taking steps with Cabinet colleagues to track the (a) cost of insurance and (b) availability of financial lending in coastal communities vulnerable to the impacts of climate change.
Answered by Rebecca Pow - Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)
Defra has published research into the availability and affordability of insurance in 2013, 2015, 2018 and 2023. Alongside this, Flood Re monitor the availability and cost of home insurance for flood affected households, including those in coastal areas.
As part of the £200m Flood and Coastal Innovation Programme (FCIP), Ministers have allocated £36m over 6 years, to develop a ‘Coastal Transition Accelerator Programme’ (CTAP) to trial opportunities, in a small number of coastal areas at significant risk of coastal erosion, to transition and adapt to a changing climate/coastline.
East Riding of Yorkshire and North Norfolk were identified as the areas to lead off the programme. Within their projects programme, they will be exploring the availability and role of financial products or services that can help people or businesses in communities most at risk of coastal erosion. Other coastal communities and risk management authorities will benefit from the learning that will be shared from this programme to inform future climate resilience and adaptation.
Asked by: Lord Bishop of St Albans (Bishops - Bishops)
Question to the Department for Education:
To ask His Majesty's Government, further to the Written Answer by Baroness Barran on 3 April (HL6647), what discussions they have had with (1) Barclays LifeSkills, (2) EVERFI, (3) HSBC, (4) Lloyds Banking Group, (5) NatWest MoneySense, (6) Santander Moneywise, and (7) other financial education providers, about improving financial education in the UK.
Answered by Baroness Barran - Parliamentary Under-Secretary (Department for Education)
The department has had conversations with a number of external organisations to understand what financial education programmes they deliver. This includes conversations with Barclays LifeSkills, Santander MoneyWise, the Just Finance Foundation, the Church of England, the Financial Times’ Financial Literacy and Inclusion Campaign, Young Enterprise and KickStart money.
The department has not spoken to the other organisations included in this list, but does work closely with The Money and Pensions Service (MaPS) and His Majesty’s Treasury to consider how we can support the teaching of financial education in schools. MaPS, as an arm’s length body sponsored by the Department for Work and Pensions, published their UK Strategy for Financial Wellbeing in January 2020. This is a ten-year framework to help UK citizens to make the most of their money and pensions. One of the key themes of their strategy is to support the financial wellbeing of children and young people. Their national goal is to ensure that two million more children and young people receive a meaningful financial education by 2030.
Education on financial matters throughout secondary school helps to ensure that pupils are prepared to manage their money well, make sound financial decisions and know where to seek further information when needed. Children should receive age appropriate financial education as part of compulsory education, so that those who leave school early can benefit. Financial education forms part of the citizenship National Curriculum, at Key Stages 3 and 4, but can be taught by all schools at all Key Stages. The subject covers the functions and uses of money, the importance of personal budgeting, money management, and managing financial risk. At secondary school, pupils are taught about income and expenditure, credit and debt, insurance, savings and pensions, financial products and services, and how public money is raised and spent.
The mathematics curriculum includes a strong emphasis on the essential arithmetic that primary pupils should be taught. A strong grasp of mathematics will underpin pupils’ ability to manage budgets and money, including, for example, using percentages. The secondary mathematics curriculum develops pupils’ understanding in relation to more complex personal finance issues such as calculating loan repayments, interest rates and compound interest.
MaPS has published financial education guidance for primary and secondary schools and we will deliver a series of webinars in due course. The MaPS guidance can be found attached.
Asked by: Lord Bishop of St Albans (Bishops - Bishops)
Question to the Department for Education:
To ask His Majesty's Government, further to the Written Answer by Baroness Barran on 3 April (HL6647), what steps they are taking to provide financial education for those who leave school early.
Answered by Baroness Barran - Parliamentary Under-Secretary (Department for Education)
The department has had conversations with a number of external organisations to understand what financial education programmes they deliver. This includes conversations with Barclays LifeSkills, Santander MoneyWise, the Just Finance Foundation, the Church of England, the Financial Times’ Financial Literacy and Inclusion Campaign, Young Enterprise and KickStart money.
The department has not spoken to the other organisations included in this list, but does work closely with The Money and Pensions Service (MaPS) and His Majesty’s Treasury to consider how we can support the teaching of financial education in schools. MaPS, as an arm’s length body sponsored by the Department for Work and Pensions, published their UK Strategy for Financial Wellbeing in January 2020. This is a ten-year framework to help UK citizens to make the most of their money and pensions. One of the key themes of their strategy is to support the financial wellbeing of children and young people. Their national goal is to ensure that two million more children and young people receive a meaningful financial education by 2030.
Education on financial matters throughout secondary school helps to ensure that pupils are prepared to manage their money well, make sound financial decisions and know where to seek further information when needed. Children should receive age appropriate financial education as part of compulsory education, so that those who leave school early can benefit. Financial education forms part of the citizenship National Curriculum, at Key Stages 3 and 4, but can be taught by all schools at all Key Stages. The subject covers the functions and uses of money, the importance of personal budgeting, money management, and managing financial risk. At secondary school, pupils are taught about income and expenditure, credit and debt, insurance, savings and pensions, financial products and services, and how public money is raised and spent.
The mathematics curriculum includes a strong emphasis on the essential arithmetic that primary pupils should be taught. A strong grasp of mathematics will underpin pupils’ ability to manage budgets and money, including, for example, using percentages. The secondary mathematics curriculum develops pupils’ understanding in relation to more complex personal finance issues such as calculating loan repayments, interest rates and compound interest.
MaPS has published financial education guidance for primary and secondary schools and we will deliver a series of webinars in due course. The MaPS guidance can be found attached.
Asked by: Rachael Maskell (Labour (Co-op) - York Central)
Question to the Department for Education:
To ask the Secretary of State for Education, what assessment she has made of the potential merits of introducing classes for school leavers to assist with life skills such as budgeting and preparation for work.
Answered by Nick Gibb
Education on financial matters helps 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.
Finance education forms part of the citizenship National Curriculum at Key Stages 3 and 4, but can be taught by all schools at all Key Stages. The subject covers the functions and uses of money, the importance of personal budgeting, money management, and managing financial risk. At secondary school, pupils are taught about income and expenditure, credit and debt, insurance, savings and pensions, financial products and services, and how public money is raised and spent.
The secondary mathematics curriculum develops pupils’ understanding in relation to more complex personal finance issues such as calculating loan repayments, interest rates and compound interest.
My right hon. Friend, the Prime Minister, has set out a new mission to ensure all pupils study some form of mathematics to 18, equipping them with the skills they need for the jobs of today and the future. This includes having the knowledge to feel confident with finances in later life, including things like finding the best mortgage deal or savings rate.
The Department works with the Money and Pensions Service (MaPS) and HM Treasury to support the effective teaching of financial education in schools. MaPS has published financial education guidance for primary and secondary schools and the Department will deliver webinars for schools in due course. The MaPS guidance can be found here: https://maps.org.uk/2021/11/11/financial-education-guidance-for-primary-and-secondary-schools-in-england/.
The Department is providing £31 million of funding in 2023/24 to support secondary schools and colleges to deliver high quality careers education and work experience, including the national rollout of Careers Hubs.
The Careers and Enterprise Company (CEC) will ensure that Careers Hubs increase young peoples’ exposure to employers and to more in-depth workplace experiences. These experiences give young people a real feel for work and the knowledge they need to succeed.