Access to Cash

Debate between Lord Blunkett and Lord Bates

Wednesday 3rd April 2019 Lords Chamber

[Lord Bates]

There are limitations that arise from the changes in the way that people access their financial services and cash. We are seeing contactless overtaking debit cards as a way of payment. These changes are happening, but it is important that the regulator and the Government work together with the industry to ensure that people continue to have the access they need to these important cash services.

[Lord Blunkett (Lab)]

My Lords, in fully supporting the point made by the noble Lord, Lord Low, I draw attention to the corollary, which is the denial of choice as the financial institutions gradually seek to eliminate the use of cheques. I believe it is important for the Minister to take this issue alongside the cash issue so that people have genuine choice in the way that they pay their bills.

[Lord Bates]

I am happy to undertake to do that. At the same time as I write the noble Lord, Lord Low, I will write to the noble Lord, Lord Blunkett.

Student Tuition Fees and Maintenance Loans

Debate between Lord Blunkett and Lord Bates

Tuesday 18th December 2018 Lords Chamber

[Lord Bates]

I cannot confirm that number: I will have to look at it. The reality with these things is that we set them out, we follow the rules set down by the ONS and the OBR and we report accordingly in the Budget Statements.

[Lord Blunkett (Lab)]

My Lords, will the Minister responsible actually confirm that should the Augar report recommend a reduction in the amount of student loan to £6,500, the amount that the ONS reclassification would result in would thereby be much smaller, but the majority of students would actually pay exactly the same amount, thereby disadvantaging universities without advantaging students?

[Lord Bates]

I am sure that, for all those reasons, those arguments will be taken into account by the Augar review.

Paradise Papers

Debate between Lord Blunkett and Lord Bates

Monday 6th November 2017 Lords Chamber

[Lord Bates]

The key point that must be remembered here is that, if funds are for legitimate reasons allowed to be placed offshore in order to purchase assets, and if the people concerned are domiciled in the UK, the funds need to be repatriated to the UK and full tax needs to be paid on the profits, income and revenue gained.

[Lord Blunkett (Lab)]

My Lords, there is a vast difference between an offshore vehicle intended to facilitate overseas investment and a trust that is set up to ensure that the individual concerned can place money outside this country, then have it loaned back to them, thereby not only avoiding income tax and national insurance on payments but, in the event of their death, ensuring that their estate has to pay the money back into the overseas trust, thus avoiding inheritance tax. That is surely a scandal.

[Lord Bates]

Each of these things will be checked by HMRC, but the point is that evasion of tax and attempting to evade tax is against the law and will be pursued with all vigour by HMRC. Avoidance continues to be part of the international financial system and we recognise and value it.

Mental and Physical Health: Insurance

Debate between Lord Blunkett and Lord Bates

Tuesday 12th September 2017 Lords Chamber

[Lord Blunkett (Lab)]

My Lords, in asking this Question, I draw attention to the fact that I have a personal interest.

[The Minister of State, Department for International Development (Lord Bates) (Con)]

My Lords, it is for private health insurers to decide the cover they offer for different types of conditions. However, the Government are determined that insurers treat customers fairly. Under the requirements set out by the Financial Conduct Authority, consumers should be widely protected, including in the health insurance market. Furthermore, where a condition is classed as a disability, equalities legislation places specific obligations on insurers to prevent unlawful discrimination.

[Lord Blunkett]

My Lords, I am grateful to the Minister. This is a Question not about private health provision for individuals but about cover for primary care professionals indisposed by illness or accident, where alternative staffing is required. Does he agree that it is totally unacceptable for a policy to be enunciated or, as in this case, unilaterally altered so that requirements for the practice entail, where stress or mental health is concerned, a psychiatrist and/or a consultant psychologist to be engaged within the first eight weeks in relation to cover? It is not only impractical but impossible to fulfil such a requirement, it is totally against normal clinical practice, and it clearly engages discrimination against those suffering from stress or mental ill health. Will the Minister consider asking the brokers’ association to issue a code of guidance so that insurers of this kind are not taken on in the future?

[Lord Bates]

I am very grateful to the noble Lord for his characteristic courtesy in giving me advance notice of the context of the Question he raised today. Although the situation he describes would obviously cause concern, I remind him, as I said, that the Financial Conduct Authority—the regulator of the insurance brokers and potentially of the insurance company—has certain duties under the FCA rules, but also under equalities legislation, to behave in an appropriate way in these matters. Where there are complaints, there is a route to take the matter up not only with the FCA—and I encourage the noble Lord to make these facts available to it—but with the financial ombudsman.