Asked by: Baroness Ritchie of Downpatrick (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what fiscal steps they plan to take to help reduce the impact on households of the rise in the cost of living.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
The Government recognises the challenge that many are facing with the cost of living and is monitoring the situation closely. It is providing support worth over £20 billion across this financial year and next that will help families with the cost of living.
This includes cutting the Universal Credit taper rate and increasing work allowances to make sure work pays, freezing alcohol and fuel duties to keep costs down, and the £9.1 billion package announced in February 2022 to help households with rising energy bills.
The Government’s Plan for Jobs is also helping people into work and giving them the skills they need to progress. We are building on the success of the Plan for Jobs, investing more than £6 billion on labour market support over three years. In addition to this, we are increasing the National Living Wage (NLW) by 6.6% to £9.50 in April 2022 for those aged 23 and over, which will mean a full-time worker on the NLW will see an increase in their earnings of over £1,000 a year.
Asked by: Baroness Ritchie of Downpatrick (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what plans they have to introduce legislation to make debt restructuring binding for all private creditors on loans provided for under legislation for England and Wales.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
The Government currently has no plans to introduce legislation to make debt restructuring binding for private creditors on loans.
To support people in problem debt, the Government has agreed to maintain record levels of funding for free-to-consumer debt advice in England in 2021-22. In addition to this, the Breathing Space scheme launched in England and Wales last year, offering people in problem debt a pause of up to 60 days on most enforcement action, interest, fees and charges, and encouraging them to seek professional debt advice.
The Government continues to develop the Statutory Debt Repayment Plan (SDRP), a statutory agreement that will enable a person in problem debt to combine their debts into a single repayment that they make over a manageable time period, while receiving legal protections from creditor action for the duration of their plan. The Government is aiming to launch a public consultation on draft SDRP regulations as soon as possible this year and has committed to aim to lay regulations by the end of this year and launch the scheme in 2024.
Asked by: Baroness Ritchie of Downpatrick (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of (1) energy, and (2) food, prices in (a) the financial years from 2016 to 2021, and (b) from the period covering 1 April 2021 to 31 January 2022.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
The Office for National Statistics (ONS) collects and publishes data on energy and food prices in its monthly consumer price inflation bulletin.
The data from each year from 2016 has been reproduced in the table below. Data for January 2022 will be published on 16 February 2022.
ONS CPI Detailed annual changes 2008 to 2021 (% Change over 12 months)
| Consumer Price Inflation | Food and non-alcoholic beverages Inflation | Electricity, gas and other fuels Inflation |
2016 | 0.7 | -2.4 | -3.0 |
2017 | 2.7 | 2.2 | 3.8 |
2018 | 2.5 | 2.1 | 6.8 |
2019 | 1.8 | 1.4 | 3.8 |
2020 | 0.9 | 0.6 | -4.6 |
2021 | 2.6 | 0.3 | 4.7 |
Asked by: Baroness Ritchie of Downpatrick (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the impact of levels of sovereign debt on lower income countries' ability to invest in climate change (1) mitigation, and (2) adaptation.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
The UK recognises the significant debt vulnerabilities faced by many low-income countries and that high debt service levels may impact efforts to invest in and respond to climate change, as well as other development goals.
To support low-income countries to tackle their debt vulnerabilities, in November 2020 the UK, alongside our G20 and Paris Club partners, agreed a new Common Framework for Debt Treatment beyond the Debt Service Suspension Initiative. This brings together, for the first time, G20 and Paris Club creditors to coordinate debt treatments following a request from any of the 73 eligible low-income countries. Private sector creditors will be expected to implement debt treatments on at least as favourable terms as those agreed by official creditors.
The UK has also committed to double our International Climate Finance to developing countries to at least £11.6bn between 2021 and 2025, continuing to balance mitigation with adaptation spend. Over the last 10 years, UK International Climate Finance has supported 88 million people to cope with the effects of climate change, providing 41 million with improved access to clean energy and avoided or reduced 51 million tonnes of greenhouse gas emissions.
As COP26 Presidency and G7 Presidency, we made it a priority to demonstrate progress on the goal to mobilise $100bn a year in climate finance from developed to developing countries to 2025. Under the UK COP26 Presidency, 95% of the largest developed country climate finance providers made new, forward-looking commitments, with many doubling or even quadrupling their support for developing countries to take climate action. It is now likely that $500 billion will be mobilised over the period 2021-25. This means more money for developing countries to decarbonise and adapt to the impacts of climate change.
Asked by: Baroness Ritchie of Downpatrick (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what steps they are taking to help ensure that local bank branches remain open to enable vulnerable people to have access to cash.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
The Government recognises that cash remains an important part of daily life for millions of people across the UK, particularly those in vulnerable groups, which is why it has committed to legislate to protect access to cash.
Last year, the Government held an Access to Cash Consultation on proposals for new laws to make sure people only need to travel a reasonable distance to pay in or take out cash. The Government’s proposals intend to support the continued use of cash in people’s daily lives and help to enable local businesses to continue accepting cash by ensuring they can access deposit facilities. The Government will set out next steps in due course.
Following the Government’s commitment to legislate, firms are working together through the Cash Action Group to develop new initiatives to provide shared services. The Government welcomes the direction set by industry’s commitments at the end of last year and looks forward to seeing what results they deliver in protecting cash facilities for local communities across the UK.
Regarding bank branches, guidance from the Financial Conduct Authority sets out its expectation of firms when they are deciding to reduce their physical branches or the number of free-to-use ATMs. Firms are expected to carefully consider the impact of planned branch closures on their customers’ everyday banking and cash access needs and consider possible alternative access arrangements. This ensures the implementation of closure decisions is undertaken in a way that treats customers fairly.
Alternative options for access to banking services can be via telephone banking, through digital means such as mobile or online banking, and the Post Office. The Post Office Banking Framework allows 95% of business and 99% of personal banking customers to deposit cheques, check their balance and withdraw and deposit cash at 11,500 Post Office branches in the UK.
Asked by: Baroness Ritchie of Downpatrick (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what recent assessment they have made of the strength of the economy in Northern Ireland.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
The latest official estimate of regional GDP produced by the Office for National Statistics indicates that Northern Ireland real GDP increased by 0.3% in 2019.
The Northern Ireland Statistics and Research Agency publish an experimental quarterly Composite Economic Index, which provides a more recent measure of economic activity. The Northern Ireland Composite Economic Index was 2.3% above average 2019 levels in 2021 Q3. By comparison, UK GDP was 1.3% lower in 2021Q3 than average 2019 levels, although the measures are not produced on a fully equivalent basis.
The labour market data from HRMC’s PAYE RTI provides a timelier and more comparable indicator of economic performance across areas of the UK. In December 2021, the number of paid employees in Northern Ireland was 2.7% above February 2020 levels, an increase of 20,000 employees. This is above the average UK employee growth of 1.4% and is the highest growth rate out of all 12 nations and regions in the UK.
The latest data also indicates that the unemployment rate for Northern Ireland in the 3 months to November 2021 was 3.1%, lower than the UK unemployment rate of 4.1%.
Northern Ireland will also continue to benefit from the UK wide Covid-19 Government support, including: a reduced rate of VAT for tourism and hospitality until 31 March 2022; continued access to Government-guaranteed finance for small and medium sized businesses via the Recovery Loan scheme in place to 30 June 2022; and the reintroduction of the Statutory Sick Pay Rebate Scheme (SSPRS) for small and medium-sized employers.
The UK Government is also providing substantial funding to the Northern Ireland Executive. At Autumn Budget we confirmed the NI Executive was receiving an extra £2.3 billion of Barnett-based funding this year – taking total block grant funding for the Northern Ireland Executive in 2021-22 to £15.9 billion. On top of this, we have now confirmed a further £150 million so the Executive have the certainty they requested to spend more money this year in advance of the usual process for confirming final Barnett consequentials. Over the next three years, the 2021 Spending Review provided the Executive with the largest real terms block grants since devolution.
Asked by: Baroness Ritchie of Downpatrick (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what recent estimate they have made of the number of foreign-owned companies that are involved in money laundering in the UK's financial services sector.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
HM Treasury does not hold an assessment of the number of foreign-owned financial services companies involved in money laundering in the UK and is not responsible for collecting such data.
However, the Financial Conduct Authority (FCA) does collect information on Anti-Money Laundering (AML) investigations opened into firms and individuals where entities may have breached their obligations under the Financial Services and Markets Act (FSMA) or the Money Laundering Regulations (MLRs).
The FCA currently has forty-one AML investigations opened into firms and individuals, the number of foreign owned firms under investigation is eight. These investigations are regulatory, civil and criminal in nature covering a wide range of potential breaches of systems and controls covered under the MLRs and the requirements under FSMA. It is important to keep in mind, that when the FCA opens an investigation, it is fact finding in nature and does not in itself mean any misconduct has occurred.
Where the FCA has evidence of ongoing breaches of AML regulations, it will take intervention action to prevent and/or contain ongoing harm. As a result of the FCA’s investigations, since 2018 the total of financial penalties issued is £970,067,419 (before settlement discounts). The FCA also secured its first criminal conviction against a body corporate for breaches of the MLRs in October 2021.
Asked by: Baroness Ritchie of Downpatrick (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what recent steps they have taken to help support the Scottish economy.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
The UK government is committed to building back better and levelling up in Scotland, as it is to all parts of the UK.
Our economic response to the pandemic has been UK-wide and continues to be one of the largest and most comprehensive in the world. £400 billion of direct economic support has protected millions of people’s livelihoods in every part of the United Kingdom. Furlough and Self Employment Income Support schemes safeguarded, in Scotland alone, over 1 million jobs and livelihoods.
The UK government continues to support economic growth across Scotland through our Plan for Growth and multi-billion-pound Plan for Jobs and increasing wages through the National Living Wage rise in April 2022. We are improving productivity by investing in infrastructure through the UK Infrastructure Bank and providing £150 million for British Business Bank investment in Scotland. Plus there is Scotland’s share of our £5 billion Project Gigabit, where Central Scotland is one of the first areas to get funding for next generation broadband.
In Scotland, the UK government is also investing £1.49 billion in 12 City and Growth Deals, stimulating local economic growth and jobs. Further, £172 million will be allocated to 8 projects in round one of the Levelling Up Fund, including to the redevelopment of Inverness Castle, the renovation of the Westfield Roundabout in Falkirk, and a new marketplace in Aberdeen City Centre.
In addition, the UK government is providing the Scottish Government with an additional £4.6 billion per year on average through the Barnett formula over the Spending Review period, on top of its annual baseline funding of £36.7 billion.
This funding is enabling the Scottish Government to support economic recovery and growth in Scotland and to provide additional investments in areas such as health, social care, environment and education.
Asked by: Baroness Ritchie of Downpatrick (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what recent assessment they have made of the strength of the UK economy.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
Last year we saw a faster-than-previously-expected economic recovery, with output in November above pre-crisis levels for the first time, and, in their latest forecast, the IMF expect the UK to be the fastest growing G7 economy this year. Our Plan for Jobs is working.
However, global supply chain disruptions and higher energy prices represent challenges that are driving higher inflation. These are global problems which we are working with our international partners on, and we are supporting households with the cost of living, providing support worth around £12bn this financial year and next alongside an announced £9.1bn package to help households with rising energy bills in 2022-23.
Asked by: Baroness Ritchie of Downpatrick (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the comparative cost of living between Scotland and England.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
The Government recognises that the pressure households are facing on their finances is being felt across the whole of the UK.
The government is providing support worth around £12 billion this financial year and next to help families with the cost of living. Much of the support in place that will help ease these pressures is UK-wide, for example the increase to the National Living Wage, the change to the Universal Credit taper rate and increase to the Work Allowance, as well as freezes to alcohol duty and fuel duty.
Many powers relevant to addressing the increases in the cost of living are devolved; the devolved administrations receive funding and have revenue raising powers and make their own spending decisions.