Asked by: Ellie Chowns (Green Party - North Herefordshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Answer of 16 October 2025 to Question 79904 on Carbon Emissions, if she will make it her policy to require the Bank of England to undertake a nature stress test.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Chancellor’s 2024 remit and recommendations letter to the Bank of England’s Financial Policy Committee (FPC) sets out that the Committee should “consider how climate-related risks could impact financial stability over the near and long term, including, where appropriate, through its stress testing frameworks, ensuring that risks stemming from possible and severe global climate scenarios are reflected in its analysis on climate risks, and that sufficient time horizons are considered”.
The remit letter also sets out that the Committee should “continue to consider the materiality of nature-related financial risks for its primary objective”.
The Chancellor and the Governor of the Bank of England meet regularly to discuss the financial stability outlook. However, the FPC and the UK’s financial regulators are operationally independent from government in terms of how they carry out their specific responsibilities. This model is important for maintaining public trust and ensuring that our expert regulators are able to act flexibly to address evolving risks.
Asked by: Mike Wood (Conservative - Kingswinford and South Staffordshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to her Department's document entitled Financial relationship between HM Treasury and the Bank of England: Memorandum of Understanding, published in February 2025 and pursuant to the Answer of 14 July 2025 to Question 65148 on Bank Notes, if she will make it her policy to amend the Memorandum of Understanding to require (a) the use of historical British figures on banknotes and (b) the representation of her Department on the Banknote Imagery Advisory Group.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Bank of England is responsible for all aspects of the design, production, and issuance of banknotes, including the selection of characters, design features, and security measures. The Bank of England is required to seek HM Treasury approval only for the introduction of new denominations, as set out in section 1(1) of the Currency and Bank Notes Act 1954 and Section 9C of the Memorandum of Understanding on the financial relationship between HM Treasury and the Bank of England.
The Memorandum of Understanding is reviewed every five years and was last updated in February 2025. The current version can be found here:
Financial relationship between HM Treasury and the Bank of England Memorandum of Understanding
The Bank of England may keep HM Treasury informed of developments on a non-statutory, informal basis, but there is no requirement for consultation with HM Treasury on matters of design or character selection. As a consequence, HM Treasury is not represented on the Bank of England’s Banknote Character Advisory Committee.
Asked by: Callum Anderson (Labour - Buckingham and Bletchley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to establish benchmarks for improving access to affordable financial services among vulnerable consumers.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Government recognises that action on financial inclusion requires a joined-up approach and will work collaboratively across local, central, and devolved governments, as well as regulators, industry, and civil society to deliver the recently published Financial Inclusion Strategy.
The Strategy sets out the Government’s plans to improve financial inclusion and resilience for underserved groups across the UK. It outlines action to address a range of barriers individuals face in accessing financial products, with a key focus on access to banking services and recognition of the important links with the National Payments Vision and the opportunities this presents to embed and support financial inclusion
To deliver the Strategy effectively, the Government will monitor levels of financial inclusion. There are a number of useful resources which were used in the development of the Strategy and which the Government will continue to monitor as the Strategy is delivered, including the Financial Conduct Authority’s (FCA) Financial Lives Survey and research carried out by the Money and Pensions Service (MaPS).
The Strategy’s implementation will be reviewed in two years’ time to provide an update on progress and relevant outcomes-based metrics, which will reflect on the progress made across the sector.
Asked by: Callum Anderson (Labour - Buckingham and Bletchley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the adequacy of mechanisms in place to co-ordinate financial inclusion delivery across (a) central government and (b) regulators.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Government recognises that action on financial inclusion requires a joined-up approach and will work collaboratively across local, central, and devolved governments, as well as regulators, industry, and civil society to deliver the recently published Financial Inclusion Strategy.
The Strategy sets out the Government’s plans to improve financial inclusion and resilience for underserved groups across the UK. It outlines action to address a range of barriers individuals face in accessing financial products, with a key focus on access to banking services and recognition of the important links with the National Payments Vision and the opportunities this presents to embed and support financial inclusion
To deliver the Strategy effectively, the Government will monitor levels of financial inclusion. There are a number of useful resources which were used in the development of the Strategy and which the Government will continue to monitor as the Strategy is delivered, including the Financial Conduct Authority’s (FCA) Financial Lives Survey and research carried out by the Money and Pensions Service (MaPS).
The Strategy’s implementation will be reviewed in two years’ time to provide an update on progress and relevant outcomes-based metrics, which will reflect on the progress made across the sector.
Asked by: Callum Anderson (Labour - Buckingham and Bletchley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to ensure that financial inclusion initiatives remain aligned with developments in (i) digital payments and (ii) banking.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Government recognises that action on financial inclusion requires a joined-up approach and will work collaboratively across local, central, and devolved governments, as well as regulators, industry, and civil society to deliver the recently published Financial Inclusion Strategy.
The Strategy sets out the Government’s plans to improve financial inclusion and resilience for underserved groups across the UK. It outlines action to address a range of barriers individuals face in accessing financial products, with a key focus on access to banking services and recognition of the important links with the National Payments Vision and the opportunities this presents to embed and support financial inclusion
To deliver the Strategy effectively, the Government will monitor levels of financial inclusion. There are a number of useful resources which were used in the development of the Strategy and which the Government will continue to monitor as the Strategy is delivered, including the Financial Conduct Authority’s (FCA) Financial Lives Survey and research carried out by the Money and Pensions Service (MaPS).
The Strategy’s implementation will be reviewed in two years’ time to provide an update on progress and relevant outcomes-based metrics, which will reflect on the progress made across the sector.
Asked by: Callum Anderson (Labour - Buckingham and Bletchley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the resources allocated for data collection to support financial inclusion monitoring.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Government recognises that action on financial inclusion requires a joined-up approach and will work collaboratively across local, central, and devolved governments, as well as regulators, industry, and civil society to deliver the recently published Financial Inclusion Strategy.
The Strategy sets out the Government’s plans to improve financial inclusion and resilience for underserved groups across the UK. It outlines action to address a range of barriers individuals face in accessing financial products, with a key focus on access to banking services and recognition of the important links with the National Payments Vision and the opportunities this presents to embed and support financial inclusion
To deliver the Strategy effectively, the Government will monitor levels of financial inclusion. There are a number of useful resources which were used in the development of the Strategy and which the Government will continue to monitor as the Strategy is delivered, including the Financial Conduct Authority’s (FCA) Financial Lives Survey and research carried out by the Money and Pensions Service (MaPS).
The Strategy’s implementation will be reviewed in two years’ time to provide an update on progress and relevant outcomes-based metrics, which will reflect on the progress made across the sector.
Asked by: James Cleverly (Conservative - Braintree)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many people have received a Lifetime ISA 25% withdrawal charge in the last 12 months for which figures are available.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
In the latest year 2024-25, 129,200 individuals made unauthorised withdrawals from their Lifetime ISA, resulting in 25% withdrawal charges.
Asked by: Calvin Bailey (Labour - Leyton and Wanstead)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if her Department will take steps to ensure that banks enable prospective customers to open bank accounts using (a) Digital ID and (b) eVisas.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
Ensuring all individuals have access to the appropriate financial services and products they need is a key priority for Government. Financial institutions are required to ask for proof of identity for new customers when they first open an account as laid out in the Money Laundering Regulations 2017 (the Regulations). The Regulations do not stipulate how a firm should verify their customers’ identities. Firms are instead required to apply a risk-based approach to how they comply with the customer due diligence requirements in the Regulations.
The Joint Money Laundering Steering Group (JMLSG) guidance makes it clear that firms can use electronic sources to verify a customer’s identity, provided that they have both (i) verified that the customer (and where appropriate, beneficial owner) exists and (ii) satisfied themselves that the applicant seeking the business relationship is, in fact, that customer (or beneficial owner).
In September, the government set out plans for a new government-backed Digital ID scheme. This Digital ID will make it easier for people across the UK to use vital government services, but will also streamline verification processes across private sectors too, such as when opening a new bank account. The government will be launching a public consultation later this year to engage industry on the proposals.
An eVisa is an online record of a person’s immigration permission in the UK, and any conditions which apply. The Home Office published guidance on the use of eVisas for identity checks, or know your customer (KYC) checks aimed at banks and other financial institutions. Individuals with an eVisa can evidence their identity and immigration status by using the online ‘view and prove your immigration status’ service to provide a time-limited code (‘share code’) to third parties such as landlords, employers and banks.
The Home Office has also implemented a comprehensive engagement strategy to smooth the transition to eVisas and to maximise awareness raising across various sectors. This includes collaboration with key stakeholders including migrant organisations and financial services providers.
Each firm will have their own policies on identification, and on the circumstances in which other checks should be undertaken. Government does not prescribe those detailed policies but expects them to be proportionate and supports firms’ efforts to be flexible and inclusive when considering relevant documentation.
Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of increasing public access to free, impartial financial guidance on (a) financial wellbeing and (b) household financial resilience.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The government recognises the importance of supporting people of all ages to develop the financial skills needed to manage their money effectively, and has taken steps to improve the provision of accessible financial guidance.
The Money and Pensions Service (MaPS) is an arm’s length body of Government which supports consumers with free, impartial financial guidance for every stage of their financial lives. Its MoneyHelper services – available online, via webchat and over the phone - offers information on a wide range of financial topics, along with easy-to-use tools and calculators to support people in managing their finances.
MaPS also runs the Money Guiders programme, which is designed to equip frontline staff – such as nurses, social workers, job coaches and community volunteers – with the skills and confidence to have effective conversations about money with the people they support. As set out in the Financial Inclusion Strategy, published on 5th November 2025, MaPS will expand and enhance Money Guiders to deliver quality financial guidance across the UK.
To date, Money Guiders has engaged over 18,000 practitioners and partnered with nearly 300 organisations. Evidence suggests that the programme has a positive impact on practitioner knowledge and understanding relating to money guidance, and their confidence delivering it, making it easier for people to access financial guidance when they need it. MaPS continues to evaluate the reach and impact of its guidance services.
Asked by: Neil O'Brien (Conservative - Harborough, Oadby and Wigston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many people were employed by the (a) Payment Systems Regulator and (b) Financial Ombudsman Service in each year since 2005.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
These are matters for the Financial Conduct Authority, the Prudential Regulation Authority, the Payment Systems Regulator and the Financial Ombudsman Service , which are operationally independent from Government. These organisations will each respond to the Honourable Member by letter, and a copy of the letters will be placed in the Library of the House of Commons.