Consumer and Personal Debt

Debate between Lord Bates and Baroness O'Cathain

Monday 23rd October 2017 Lords Chamber

[Lord Bates]

The Financial Conduct Authority placed a duty on banks to make sure that lending is on a sustainable basis. In the wider area, it is also important that we maintain the strong and vibrant economy that has record numbers of people in work and record low levels of unemployment. Those things are the greatest help to people’s ability to service debt and are therefore the primary focus of our attention.

[Baroness O'Cathain (Con)]

My Lords, this is all about the horrible situation that people get into because of debt. It is wonderful that the Government are trying to do something to reduce it and to make people more aware of it, but what incentive will they give to people to save? The incentives to have debt are being addressed but there is no incentive at all to save.

[Lord Bates]

The report referred to earlier contained the staggering statement that more than 40% of Britons have less than £100 in savings as a buffer before they get into debt. That is one reason why my noble friend will be pleased to know that we have established the Help to Save scheme. It will help 3.5 million people save £50 per month over two years. If they do that, the Government will give a 50% grant, which represents a very substantial rate of return to encourage saving.

Financial Services: Regulation

Debate between Lord Bates and Baroness O'Cathain

Wednesday 6th September 2017 Lords Chamber

[Baroness O'Cathain (Con)]

My Lords, does my noble friend agree that one way to reduce regulation would be to review the excessive checks being made on politically exposed people in the UK, including me?

[Lord Bates]

I suppose we can all declare an interest in that. My noble friend may be encouraged to hear that as a result of the money laundering regulations that were laid before the House in June 2017, the FCA has issued guidance on politically exposed persons to ensure that they are dealt with on a case-by-case basis and in a proportionate way, and that organisations focus on those individuals who would be at highest risk and recognise those who are at lowest risk, which I am sure would include all Members of your Lordships’ House.

International Students: Post-study Visa

Debate between Lord Bates and Baroness O'Cathain

Wednesday 1st July 2015 Lords Chamber

[Lord Bates]

I am very happy to meet representatives of the universities. In fact, earlier this year the All-Party Parliamentary Group on Migration produced a very helpful report entitled UK Post Study Work Opportunities for International Students, which drew on evidence from universities. I have read it, and it may be helpful to follow it up with universities to make sure that we get the message out on what we are selling and what they should be selling—that is, world-class education, in which we specialise, not low-skilled employment.

[Baroness O'Cathain (Con)]

My Lords, some time ago, as a member of a digital study that we were doing in this House, a group of us went to Imperial College. We were told categorically by graduate students there that they would have to leave within two or three months of finalising their studies. The Minister is saying that they do not have to do that, so why do we not get that message across? I am hearing that from students everywhere, so they are getting misinformation or a lack of information. I think that it would be to the benefit of us all to get that message across.

[Lord Bates]

Imperial College is a world-leading university and we are very proud of it. I want to be clear on the specific point that my noble friend made. If someone is not going into a graduate-level job, they will have four months following the completion of their course to look for work. If they do not do that but are able to find graduate-level employment, they are able to apply for a tier 2 visa. If they secure a temporary internship, they can stay for 12 months. If they are completing a doctorate, they can stay for 12 months, and if they are setting up a business, they are particularly welcome and can stay longer.