HM Treasury

Within the Economy Update on 26^th May, the Chancellor announced the Government is urgently evaluating the scale of extraordinary profits in the energy generation sector and the appropriate next steps.

As part of this process, officials are currently engaging with industry stakeholders, to gather evidence on energy generator’s level of profitability and the operation of their business models.

The PM’s ten-point plan and recent energy security strategy has set the UK on a pathway to a significant movement away from gas generation and towards renewables and low-carbon technologies.

The Government recognises that any measures, tax or otherwise, need to be proportionate and avoid creating undue distortion or impacts on UK investment.

Within the Economy Update on 26^th May, the Chancellor announced the Government is urgently evaluating the scale of extraordinary profits in the energy generation sector and the appropriate next steps.

As part of this process, officials are currently engaging with industry stakeholders, to gather evidence on energy generator’s level of profitability and the operation of their business models.

The PM’s ten-point plan and recent energy security strategy has set the UK on a pathway to a significant movement away from gas generation and towards renewables and low-carbon technologies.

The Government recognises that any measures, tax or otherwise, need to be proportionate and avoid creating undue distortion or impacts on UK investment.

Within the Economy Update on 26^th May, the Chancellor announced the Government is urgently evaluating the scale of extraordinary profits in the energy generation sector and the appropriate next steps.

As part of this process, officials are currently engaging with industry stakeholders, to gather evidence on energy generator’s level of profitability and the operation of their business models.

The PM’s ten-point plan and recent energy security strategy has set the UK on a pathway to a significant movement away from gas generation and towards renewables and low-carbon technologies.

The Government recognises that any measures, tax or otherwise, need to be proportionate and avoid creating undue distortion or impacts on UK investment.

Within the Economy Update on 26^th May, the Chancellor announced the Government is urgently evaluating the scale of extraordinary profits in the energy generation sector and the appropriate next steps.

As part of this process, officials are currently engaging with industry stakeholders, to gather evidence on energy generator’s level of profitability and the operation of their business models.

The PM’s ten-point plan and recent energy security strategy has set the UK on a pathway to a significant movement away from gas generation and towards renewables and low-carbon technologies.

The Government recognises that any measures, tax or otherwise, need to be proportionate and avoid creating undue distortion or impacts on UK investment.

Within the Economy Update on 26^th May, the Chancellor announced the Government is urgently evaluating the scale of extraordinary profits in the energy generation sector and the appropriate next steps.

As part of this process, officials are currently engaging with industry stakeholders, to gather evidence on energy generator’s level of profitability and the operation of their business models.

The PM’s ten-point plan and recent energy security strategy has set the UK on a pathway to a significant movement away from gas generation and towards renewables and low-carbon technologies.

The Government recognises that any measures, tax or otherwise, need to be proportionate and avoid creating undue distortion or impacts on UK investment.

In January 2021, the government legislated to bring all pre-paid funeral plan providers and intermediaries within the regulatory remit of the Financial Conduct Authority (FCA). This will ensure that, for the first time, consumers are protected by compulsory and robust regulation.

Safe Hands Plans went into administration in March 2022. The government understands that this will be concerning for customers of Safe Hands and continues to monitor the implementation of regulation in this sector closely.

Dignity’s recent commitment to provide ongoing support to Safe Hands’ customers until November 2022 is welcome. This will ensure that any planholders who pass away during this time will receive a funeral without any additional charge.

The administration process for Safe Hands is an ongoing legal process under the general control of court. This process may provide further information about what has happened at the firm, and the government awaits the outcome with interest.

The methodology for calculating payments to Equitable Life policyholders was published in 2011 and can be found at: www.gov.uk/government/publications/equitable-life-payment-scheme-design.

At 31 May 2022, the total value of payments made by the Equitable Life Payment Scheme was £1,305,099,430.44

The Financial Conduct Authority (FCA) is operationally independent from the Government. Questions about the FCA’s day to day decision making, including details about staffing, budget and spending are matters for the independent FCA.

These questions have therefore been passed to the FCA who will respond directly to the honourable member by letter. A copy of the letter will be placed in the Library of the House.

The Financial Conduct Authority (FCA) is operationally independent from the Government. Questions about the FCA’s day to day decision making, including details about staffing, budget and spending are matters for the independent FCA.

These questions have therefore been passed to the FCA who will respond directly to the honourable member by letter. A copy of the letter will be placed in the Library of the House.

The government recognises that while the transition towards digital payments brings many opportunities cash remains an important part of daily life for millions of people across the UK, including those who may be in vulnerable groups or elderly. The government remains closely engaged with the financial regulators, including through the Treasury-chaired Joint Authorities Cash Strategy Group, to monitor trends relating to the use of cash by people and businesses.

In the Queen’s Speech in May 2022 the government announced that it will introduce legislation to protect access to cash as part of the Financial Services and Markets Bill. The government intends to establish the FCA as the lead regulator for access to cash with responsibility to ensure that people can continue to access cash withdrawal and deposit facilities. Through this legislation the government intends to ensure that people can continue to use cash in their day-to-day lives. The Bill will be brought forward when Parliamentary time allows.

The Government is strongly committed to tackle financial exclusion and discrimination and aims for everyone, whatever their background or income, to be able to access useful and affordable financial products and services. The Government works closely together with regulators, the financial services industry and other stakeholders, to ensure that all consumers of financial services are appropriately protected.

Industry-agreed principles, rather than government policy, determine what and how information is shared between organisations and Credit Reference Agencies (CRAs). CRAs then hold this information on individuals’ credit files and use it to create a credit score.

Consumers can add a Notice (of up to 200 words) to their credit file explaining any circumstances, such as being a victim of financial abuse, that may impact decisions made about their applications for credit, including mortgages. Lenders should take the content of this Notice into account alongside the other information on the credit file. In addition, the Financial Conduct Authority (FCA) is currently undertaking a Credit Information Market Study which is assessing how the sector is working now and how it may develop in the future. The FCA will publish an interim report in summer 2022.

The FCA is also currently developing a new Consumer Duty, which would require firms to place more emphasis on the needs of all customers, including those who are vulnerable or at risk of being financially excluded. The FCA is required to publish its final rules before the end of July.

Prior to this, in February 2021, the FCA also published its finalised guidance for firms on the fair treatment of vulnerable customers, setting out a number of best practices (https://www.fca.org.uk/publications/finalised-guidance/guidance-firms-fair-treatment-vulnerable-customers).

This applies to all firms where the FCA Principles for Business apply, regardless of sector and in respect of the supply of products or services to retail customers.

The Financial Ombudsman Service (FOS) is an independent non-governmental body. The Treasury is not involved in the day-to-day operations of the FOS and the remit of the FOS is set out by the Financial Conduct Authority. The rules on how the FOS should handle complaints state that ‘The ombudsman will attempt to resolve complaints at the earliest possible stage. Inevitably some cases will be more complex than others and therefore take more time to resolve, however the FOS should deal with all cases in a timely manner.

Nevertheless, the Government agrees that it is vitally important that the FOS should be accountable for its performance and the quality of its work. The FOS answers to a board of directors, appointed by the Financial Conduct Authority, and must make a report each year on the discharge of its functions which is required to be laid before Parliament. This ensures Parliament is able to scrutinise the efficiency, effectiveness and economy with which the FOS carries out its functions. There are also regular meetings between Treasury officials and the FOS where relevant emerging issues are discussed.

The Government recognises the importance of transparency of fees and charges in ensuring effective competition between payment service providers.

Where currency conversion is provided as part of a payment transaction, the Payment Services Regulations 2017 make requirements on UK payment service providers regarding disclosure of fees and charges to the payer, for example, the exchange rate used for a currency conversion transaction. Provisions under the Cross Border Payments Regulation, which continue to apply in the UK as part of retained EU law, also contribute to price transparency, with further requirements regarding how foreign exchange costs must be communicated before a payment is made. The Financial Conduct Authority (FCA) is the relevant regulatory authority with responsibility for monitoring and enforcing these requirements, and should the FCA have concerns regarding firms’ compliance with the requirements on fee advertisement, it will take appropriate action as necessary

These regulations, among other things, are intended to enable payment service users such as consumers and SMEs to make informed decisions when making use of payment services, including where currency conversion is offered as part of a payment transaction. The Government has no plans at this time to amend the requirements on firms, but keeps all policy under review.

The Government recognises the importance of transparency of fees and charges in ensuring effective competition between payment service providers.

Where currency conversion is provided as part of a payment transaction, the Payment Services Regulations 2017 make requirements on UK payment service providers regarding disclosure of fees and charges to the payer, for example, the exchange rate used for a currency conversion transaction. Provisions under the Cross Border Payments Regulation, which continue to apply in the UK as part of retained EU law, also contribute to price transparency, with further requirements regarding how foreign exchange costs must be communicated before a payment is made. The Financial Conduct Authority (FCA) is the relevant regulatory authority with responsibility for monitoring and enforcing these requirements, and should the FCA have concerns regarding firms’ compliance with the requirements on fee advertisement, it will take appropriate action as necessary

These regulations, among other things, are intended to enable payment service users such as consumers and SMEs to make informed decisions when making use of payment services, including where currency conversion is offered as part of a payment transaction. The Government has no plans at this time to amend the requirements on firms, but keeps all policy under review.

The Government recognises the actions of the financial services industry to help tackle APP fraud, including the creation of the Contingent Reimbursement Model Code. The Contingent Reimbursement Model (CRM) is a voluntary code which sets out reimbursement standards for signatory Payment Service Providers (PSPs).

With nine of the UK’s largest banks signatory to the Code, the CRM has had some beneficial impacts since its introduction in May 2019. However, while improving matters, the Code comes with limitations, including disparity in how different payment service providers are interpreting their obligations under it, as well as its lack of comprehensive cover across providers.

The Government therefore welcomed the PSR’s recent consultation on APP scams, which set out various potential measures that could improve scam prevention and outcomes, including proposals to introduce mandatory requirements to reimburse victims. The Government has confirmed it intends to legislate to address any barriers regarding regulatory action on mandatory reimbursement when parliamentary time allows, as part of the Financial Services & Markets Bill. Treasury Officials also undertake regular engagement with financial services firms, the Lending Standards Board (who oversee the CRM Code) and other stakeholders, to understand what further action can be taken to protect consumers from APP fraud.

The Government recognises the actions of the financial services industry to help tackle APP fraud, including the creation of the Contingent Reimbursement Model Code. The Contingent Reimbursement Model (CRM) is a voluntary code which sets out reimbursement standards for signatory Payment Service Providers (PSPs).

With nine of the UK’s largest banks signatory to the Code, the CRM has had some beneficial impacts since its introduction in May 2019. However, while improving matters, the Code comes with limitations, including disparity in how different payment service providers are interpreting their obligations under it, as well as its lack of comprehensive cover across providers.

The Government therefore welcomed the PSR’s recent consultation on APP scams, which set out various potential measures that could improve scam prevention and outcomes, including proposals to introduce mandatory requirements to reimburse victims. The Government has confirmed it intends to legislate to address any barriers regarding regulatory action on mandatory reimbursement when parliamentary time allows, as part of the Financial Services & Markets Bill. Treasury Officials also undertake regular engagement with financial services firms, the Lending Standards Board (who oversee the CRM Code) and other stakeholders, to understand what further action can be taken to protect consumers from APP fraud.

The Managed Service Companies (MSC) legislation, introduced in 2007, prevents the large-scale promotion of structures where workers work through companies that serve no commercial purpose beyond trying to achieve a tax saving.

The MSC rules require there to be an MSC provider, who is the promoter of these arrangements. It is not the case, however, that all clients of an MSC provider will necessarily be an MSC. HMRC guidance in the Employment Status Manual at ESM3510 sets out the criteria.

If a person disagrees with a tax decision made by HMRC, they have the right to appeal, request a review, or notify the appeal to the tax tribunal.

HMRC, will seek, wherever possible, to handle disputes by working collaboratively with customers. In any dispute, HMRC will seek to establish and understand the relevant evidence and facts as quickly and efficiently as possible.

Under the UK-EU Trade and Co-operation Agreement (TCA), both the UK and the EU agreed to remove tariffs in relation to the goods originating in the UK/EU. This means that goods exported to the EU from GB that meet the preferential rules of origin in the TCA do not incur customs duty.

HMG has and continues to provide extensive support to GB business.

As the customs authority, HMRC works alongside Border Force to ensure that border processes are as smooth as possible, whilst targeting cross-border threats. HMRC uses a risk based and intelligence-led response focusing compliance interventions on tackling the goods and traders that represent highest risks to revenue, the UK economy and wider society, and our international reputation.

HMRC has provided support on GOV.UK to help importers understand the import procedures they need to follow and the duty they need to pay (including on goods from China).

HM Treasury, as part of its normal activities, carefully monitors the UK economy, and any risks to it, and remains ready to respond to challenges.

HM Treasury’s spend on consultancy is published and available for viewing within the Annual Report and Accounts. HMT is yet to lay its accounts for 2021-22, but these are due to be published prior to the summer recess. We have included the links to the published Annual Report and Accounts for each of the available years in question within the table below.

At Spring Statement 2022 in response to fuel prices reaching record levels, the Government announced a temporary 12-month cut to duty on petrol and diesel of 5p per litre.

This is the largest cash-terms cut across all fuel duty rates at once, ever, and is only the second time in 20 years that main rates of petrol and diesel have been cut. This cut represents savings for households and businesses worth around £2.4 billion in 2022-23.

The Government has been clear that it expects those in the supply chain to pass the fuel duty cut through to consumers as promptly as possible. Following a request from the Business Secretary, the Competition and Markets Authority will undertake a short and focused review of the fuel market and will provide advice to the Government on steps that could be taken to improve outcomes for consumers.

All taxes, including fuel duty, remain under review.

The Approved Mileage Allowance Payment (AMAP) rates aim to reflect running costs including fuel, servicing and depreciation. Depreciation is estimated to constitute the most significant proportion of the AMAP rates. Fuel costs only contribute to a fraction of AMAP rates and not the total rate.

Employers are not required to use AMAPs. Instead, they can agree to reimburse the actual cost incurred, where individuals can provide evidence of the expenditure, without an Income Tax or National Insurance charge arising.

As with all taxes and allowances, the Government keeps AMAP rates under review and any changes are considered by the Chancellor.

The tax position of these types of payments will depend on the circumstances on which they are provided and would be considered by HMRC on a case-by-case basis.

Unique circumstances globally, including the war in Ukraine, have pushed pump prices up to unprecedented levels. In response to fuel prices reaching their highest ever levels, the Government announced at Spring Statement 2022 a temporary 12-month cut to duty on petrol and diesel of 5p per litre across the UK. This cut represents savings for households and businesses worth around £2.4 billion in 2022-23.

VAT has been designed as a broad-based tax on consumption, and the twenty per cent standard rate applies to the vast majority of goods and services. While there are exceptions to the standard rate, these have always been strictly limited by both legal and fiscal considerations. VAT makes a significant contribution to the public finances and, according to OBR forecasts, will have raised approximately £135 billion in 2021/22. As you will know, any reduction in tax paid is a reduction in the money available to support important public services, including the NHS and policing.

In response to fuel prices reaching their highest ever levels, the Government announced at Spring Statement 2022 a temporary 12-month cut to duty on petrol and diesel of 5p per litre across the UK. This cut represents savings for households and businesses worth around £2.4 billion in 2022-23.

VAT has been designed as a broad-based tax on consumption and the twenty per cent standard rate applies to the vast majority of goods and services, including VAT on road fuel. Whilst there are exceptions to the standard rate, these have always been strictly limited by both legal and fiscal considerations.

A key principle of the VAT system is that similar supplies are subject to similar levels of VAT. The Government keeps all taxes under constant review, but there are no plans to offer VAT rebates on fuel for key workers.

Throughout the pandemic, our NHS workers have gone above and beyond to protect public health and this Government has supported NHS workers in any way it can.

As part of the Government’s manifesto commitment to introduce free hospital car parking for in-need groups, NHS staff working overnight are able to access free hospital car parking and 97% of Trusts that charge for parking have implemented this commitment.

The government is providing over £15bn of additional support, to address global inflationary pressures, targeted particularly on those with the greatest need. This package builds on the over £22bn announced previously, with government support for the cost of living now totaling over £37bn this year.

Millions of the most vulnerable households will receive at least £1,200 of one-off support in total this year to help with the cost of living.

For households that are not eligible for Cost of Living Payments or for families that still need additional support; the government is providing an extra £500 million of local support, via the Household Support Fund. The Fund will be extended from this October to March 2023, bringing total funding for the scheme to £1.5 billion.

The government is also committed to tackling the underlying, long-term factors driving cost of living challenges. This includes: helping people into work and supporting them to keep more of what they earn; solidifying our supply chains and boosting our energy security; and driving economic growth through a lower tax, dynamic market economy.

On 1 April 2022, the Government increased the National Living Wage (NLW) by 6.6% to £9.50 an hour for workers aged 23+. This helps keeps us on track to meet our target, which will help make significant progress on ending low pay by 2024-25.

The April 2022 increase in the NLW represents an increase of over £1,000 to the annual earnings of a full-time worker on the National Living Wage and is expected to benefit over 2 million workers.

Pay for most frontline workforces – including nurses, teachers, armed forces and police officers - is set through an independent Pay Review Body process. The Pay Review Bodies will consider a range of evidence when forming their recommendations.

Spending Review 2021 confirmed that public sector workers will see pay rises across the whole Spending Review period (22/23-24/25).

Treasury ministers and officials engage with stakeholders on a variety of issues. However, the pricing of financial products is a commercial decision for firms and the Government does not seek to intervene in such decisions.

The Government recognises the value of co-operatives. They offer a different form of running a business, with a focus on delivering the services their members and communities need. Social enterprises have an important role to play in levelling up the country. As set out in the Levelling Up White Paper (LUWP) the Government is committed to:

o supporting social organisations and entrepreneurship to flourish in left-behind places and generating evidence on what works

o building on and augmenting existing support for the sector

o encouraging the next generation of social entrepreneurs.

The Government is committed to having a thriving social businesses and co-operative sector and helping to support current and establish further businesses which serve local communities up and down the country. At Budget 2021, the Government announced the £150m Community Ownership Fund. This allows community groups, including social businesses and cooperatives, to bid for up to £250,000 matched-funding to help them buy or take over local community assets at risk of being lost and run them as community-owned businesses. As of May 2022, 39 Projects across the UK have been announced to benefit from the fund.

The Government has provided significant support to the co-operative sector in recent years and has sought to improve the business environment for co-operatives and mutuals. The Co-operative and Community Benefit Societies Act 2014 helped cut through the legal complexity involved in running a co-operative, improving their competitiveness. The ability of co-operatives to raise £100,000 of withdrawable share capital per member, increased from £20,000 in 2014, has also ensured that co-operatives have the necessary flexibility to raise funding and compete more effectively with companies.

Data published by the FCA in May 2021 showed that there was a net increase of 108 co-operative and community benefit societies in 2020-2021, compared to a net decrease of 204 societies in 2016-2017.

Business incubators and accelerators play a crucial role in helping businesses start and grow, including social businesses and cooperatives. In 2019, BEIS published the research paper Impact of Business Incubators and Accelerators in the UK, which reported that most start-ups who used an incubator or accelerator considered them to have been significant or even vital to their success.

The Government recognises the value of co-operatives. They offer a different form of running a business, with a focus on delivering the services their members and communities need. Social enterprises have an important role to play in levelling up the country. As set out in the Levelling Up White Paper (LUWP) the Government is committed to:

o supporting social organisations and entrepreneurship to flourish in left-behind places and generating evidence on what works

o building on and augmenting existing support for the sector

o encouraging the next generation of social entrepreneurs.

The Government is committed to having a thriving social businesses and co-operative sector and helping to support current and establish further businesses which serve local communities up and down the country. At Budget 2021, the Government announced the £150m Community Ownership Fund. This allows community groups, including social businesses and cooperatives, to bid for up to £250,000 matched-funding to help them buy or take over local community assets at risk of being lost and run them as community-owned businesses. As of May 2022, 39 Projects across the UK have been announced to benefit from the fund.

The Government has provided significant support to the co-operative sector in recent years and has sought to improve the business environment for co-operatives and mutuals. The Co-operative and Community Benefit Societies Act 2014 helped cut through the legal complexity involved in running a co-operative, improving their competitiveness. The ability of co-operatives to raise £100,000 of withdrawable share capital per member, increased from £20,000 in 2014, has also ensured that co-operatives have the necessary flexibility to raise funding and compete more effectively with companies.

Data published by the FCA in May 2021 showed that there was a net increase of 108 co-operative and community benefit societies in 2020-2021, compared to a net decrease of 204 societies in 2016-2017.

Business incubators and accelerators play a crucial role in helping businesses start and grow, including social businesses and cooperatives. In 2019, BEIS published the research paper Impact of Business Incubators and Accelerators in the UK, which reported that most start-ups who used an incubator or accelerator considered them to have been significant or even vital to their success.

The Government recognises the difficulties that carers are facing due to the rising cost of living and values the vital contribution made by carers to society. That is why millions of the most vulnerable households, including carers, will receive at least £1,200 of one-off support in total this year to help with the cost of living.  Nearly 60% of the 1 million working age Carer’s Allowance recipients receive a means-tested benefit, a disability benefit, or both and will therefore benefit from one or both of the £650 Means-Tested Benefit Cost of Living Payment and the £150 disability Cost of Living Payment. Carers with a pensioner in the household will benefit from an extra £300 Pensioner Cost of Living Payment and carers will benefit from the £400 per household universal support provided through the Energy Bills Support Scheme.

Previously announced measures to help people tackle the cost of living will also benefit carers, including cuts to the Universal Credit (UC) taper rate, cuts to fuel duty, raising the NICs threshold, council tax rebates and the rise in the National Living Wage to £9.50 an hour.

For carers that are not eligible for Cost of Living Payments or for those that need additional support, the government is providing an extra £500 million of local support, via the Household Support Fund. The Fund will be extended from this October to March 2023, bringing total funding for the scheme to £1.5 billion.

The Department for Transport is responsible for the sector where most National Union of Rail, Maritime and Transport Workers are employed. The rail disputes are between individual employers and the trade unions, and it would not be prudent for Government to intervene in this relationship. Ministers encourage the unions to keep negotiating with Network Rail and the train operating companies, as the employers, to resolve this dispute. Ministers remain close to discussions that are taking place.

Millions of households across the UK are struggling to make their incomes stretch to cover the rising cost of living. The government is providing over £15bn of additional support, targeted particularly on those with the greatest need. This package builds on the over £22bn announced previously, with government support for the cost of living now totalling over £37bn this year.

The government is helping all domestic electricity customers in Great Britain to cope with the impact of higher energy bills, with £400 off their bills from October through the expansion of the Energy Bills Support Scheme (EBSS). This is a doubling of the £200 of support announced in February, and there will no longer be any repayments. The government will deliver equivalent support to people in Northern Ireland.

The government is supporting over 8 million households across the UK in receipt of means tested benefits with a one-off Cost of Living Payment of £650, paid in two instalments.

The government is giving additional UK-wide support to help disabled people with the particular extra costs they will face, with 6 million people who receive non-means tested disability benefits receiving a one-off disability Cost of Living Payment of £150.

The government is also providing extra support to help all pensioners across the UK stay warm this winter. Over eight million pensioner households will receive an extra one-off £300 this year to help them cover the rising cost of energy this winter.

For households that are not eligible for Cost of Living Payments or for families that still need additional support; the government is providing an extra £500 million of local support, via the Household Support Fund. The Fund will be extended from this October to March 2023, bringing total funding for the scheme to £1.5 billion.

Millions of the most vulnerable households will receive at least £1,200 of one-off support in total this year to help with the cost of living.

The government is also committed to tackling the underlying, long-term factors driving cost of living challenges. This includes: helping people into work and supporting them to keep more of what they earn; solidifying our supply chains and boosting our energy security; and driving economic growth through a lower tax, dynamic market economy.

Millions of households across the UK are struggling to make their incomes stretch to cover the rising cost of living. The government is providing over £15bn of additional support, targeted particularly on those with the greatest need. This package builds on the over £22bn announced previously, with government support for the cost of living now totalling over £37bn this year.

The government is helping all domestic electricity customers in Great Britain to cope with the impact of higher energy bills, with £400 off their bills from October through the expansion of the Energy Bills Support Scheme (EBSS). This is a doubling of the £200 of support announced in February, and there will no longer be any repayments. The government will deliver equivalent support to people in Northern Ireland.

The government is supporting over 8 million households across the UK in receipt of means tested benefits with a one-off Cost of Living Payment of £650, paid in two instalments.

The government is giving additional UK-wide support to help disabled people with the particular extra costs they will face, with 6 million people who receive non-means tested disability benefits receiving a one-off disability Cost of Living Payment of £150.

The government is also providing extra support to help all pensioners across the UK stay warm this winter. Over eight million pensioner households will receive an extra one-off £300 this year to help them cover the rising cost of energy this winter.

For households that are not eligible for Cost of Living Payments or for families that still need additional support; the government is providing an extra £500 million of local support, via the Household Support Fund. The Fund will be extended from this October to March 2023, bringing total funding for the scheme to £1.5 billion.

Millions of the most vulnerable households will receive at least £1,200 of one-off support in total this year to help with the cost of living.

The government is also committed to tackling the underlying, long-term factors driving cost of living challenges. This includes: helping people into work and supporting them to keep more of what they earn; solidifying our supply chains and boosting our energy security; and driving economic growth through a lower tax, dynamic market economy.

Spending Review 2021 placed a renewed emphasis on ensuring that every pound of taxpayers’ money is spent well and focused on the areas that make the most difference to people’s daily lives. The government set clear outcomes for what spending will buy; ensured that all decisions are informed by the best quality evidence; encouraged joint working between departments; and took further action to drive out low value or inefficient spend.

At the Spring Statement, the government also set out plans to tackle waste and inefficiency across the public sector through a comprehensive efficiency agenda. This includes a new Public Sector Fraud Authority that will tackle fraud and a further £12 million investment in HMRC to help prevent error and fraud in tax credits. Work on ensuring value for money is being driven by the Chancellor-chaired Committee on Efficiency and Value for Money.

On 1 April 2022, the Government increased the National Living Wage by 6.6% to £9.50 an hour for workers aged 23+. This helps keeps us on track to meet our target to end low pay by 2024-25.

The April 2022 increase in the National Living Wage represents an increase of over £1,000 to the annual earnings of a full-time worker on the National Living Wage and is expected to benefit over 2 million workers.

We are also delivering a significant tax cut for low-income families by reducing the Universal Credit taper rate from 63p to 55p, and increasing Universal Credit work allowances by £500 p.a. This is essentially a tax cut for the lowest paid in society worth £2.2bn next year and means that around 2m families will save an extra £1,000 a year on average.

Following the review of business rates the government announced measures worth £7 billion for businesses over the next 5 years.

We have already started implementing the findings from the review, by freezing the multiplier in 2022/23, introducing a 50 per cent retail relief, and introducing new plant and machinery and heat networks reliefs.

Other reforms, including the new improvement relief, will be implemented from April 2023.

On 26^th May, the Chancellor announced that the Government was urgently evaluating the scale of extraordinary profits in the energy generation sector and the appropriate next steps.

As part of this process, officials have been engaging with industry stakeholders to gather evidence on energy generators’ level of profitability and the operation of their business models.

At Spring Statement, we equalised the National Insurance and income tax starting thresholds.

Our work towards OECD Pillar 1 & 2 reforms will help to ensure multinational businesses pay their fair share.

The government is committed to tackling avoidance and evasion to ensure that everyone pays the right amount of tax at the right time.

The Energy Profits Levy is a temporary measure, the revenues from which will help to provide vital support for households facing cost of living pressures.

The government expects the combination of the Levy and its investment allowance to lead to an overall increase in investment.

Truphone Limited are not currently subject to financial sanctions.

Financial sanctions restrictions apply to any entity that is itself designated, or is owned or controlled directly or indirectly by a designated person. This includes where that person holds (directly or indirectly) more than 50% of the shares or voting rights in an entity, has the right (directly or indirectly) to appoint or remove a majority of the board of directors of the entity, or it is reasonable to expect that the person would be able to ensure the affairs of the entity are conducted in accordance with the person’s wishes.

If any sanctioned individuals are due to receive funds as a result of the sale of a company which is not subject to financial sanctions restrictions, any funds they receive from a UK company or into a UK bank account will need to be frozen. A licence from the Office of Financial Sanctions Implementation (OFSI) in HM Treasury would then be needed for any onward movement of such funds, otherwise breaches of financial sanctions restrictions may occur. Any suspected breach of financial sanctions should be reported to OFSI.

OFSI is the competent authority for implementing and enforcing the UK’s financial sanctions. The maintenance of national security is a cross-departmental effort and any activity to monitor and intervene in matters of national security may be undertaken by departments other than HMT.