Banks: Cash Withdrawals

Debate between Lord Davies of Oldham and Lord Young of Cookham

Tuesday 11th June 2019 Lords Chamber

[Lord Young of Cookham]

The noble Lord is quite correct that LINK is directly commissioning ATMs in areas that do not have one but need one. If he has a particular area in mind that needs an ATM but does not have one, I am sure he will let LINK know. The company has tried to ensure the viability of free-to-use ATMs in deprived areas by increasing the transaction fee that the ATM owner gets to £2.75 per transaction, against the standard fee of 25.9p. LINK’s policy is that where it has to shrink the estate, it does so by removing ATMs that are close to another one—73% are within five minutes’ walk of another one—but maintaining free-to-use ATMs in remote or deprived areas.

[Lord Davies of Oldham (Lab)]

My Lords, I am sure the Minister will appreciate that the banks owe wider society a great deal after 2008. How is it, therefore, that somewhere like Hebden Bridge—and I do not always quote Yorkshire with enormous favour—has no bank and only six ATMs at present? Those six are being reduced to two, and the two are so busy that they run out of cash. How is this system, which the Minister has just commended, working?

[Lord Young of Cookham]

I will certainly draw LINK’s attention to the problems the noble Lord has just outlined in Hebden Bridge. I hope that Hebden Bridge also has some post offices. We have invested £2 billion in post offices since 2010 in order that they can provide access to cash and other banking facilities. However, I will contact LINK to see whether we can ensure that those cash machines in Hebden Bridge are fully charged, in view of the pressing demands of the residents of that town for cash.

National Health Service: Pensions

Debate between Lord Davies of Oldham and Lord Young of Cookham

Monday 10th June 2019 Lords Chamber

[Lord Young of Cookham]

My Lords, in the interval between my noble friend tabling his Question and today, the Government made a significant announcement on 3 June aimed at addressing the very problem that he addresses in his Question, and no doubt he can claim some credit for that chain of events. On the point about the impact on patients, between 2018 and 2019 57% of GPs who retired took early retirement. Some consultants are unwilling to take on extra sessions because of the impact on their pensions, and that has an impact on the quality of service that we can provide. On his more detailed question, I understand the sense of injustice that he feels about the circumstances that he has described. I will see whether the consultation that begins at the end of the month can be stretched to include the broader review that he has just proposed.

[Lord Davies of Oldham (Lab)]

My Lords, are not the Government being more than a little tardy in response to this situation? After all, they introduced the pension arrangements in 2015 and it is clear that they made a right mess of them in some respects. In addition to the range of people whom the noble Lord, Lord Naseby, spoke about a moment ago, both ends of the medical profession—younger doctors and consultants—are greatly aggrieved at the provision of pensions under the 2015 legislation. I just wonder why the Minister can say with equanimity that we are getting round to a consultation.

[Lord Young of Cookham]

It is important that noble Lords understand the background to the changes. One of the most expensive tax reliefs is pension tax relief. It costs £50 billion per year—roughly half the budget of the NHS. Two-thirds of that goes to additional, or higher-rate, taxpayers. The reforms introduced over the last two Parliaments were aimed at targeting the relief more effectively and saving £6 billion that could be redirected towards other priorities. Less than 1% of taxpayers will be affected by the taper of £40,000 that was introduced, and more than 95% of those approaching pension age will not be affected by the lifetime allowance.

Banks: Fraud Prevention

Debate between Lord Davies of Oldham and Lord Young of Cookham

Monday 20th May 2019 Lords Chamber

[Lord Young of Cookham]

The voluntary code that comes into effect next week will in fact extend to all banks the facility to which the noble Baroness just referred, which has been undertaken by the TSB. As from next week, as long as you have done everything that you should and it was not your fault, you will get your money back. Vulnerable victims will get their money back even if they have not exercised due care. I welcome this not just because it gives added protection to customers, but because it means that the banks will have to pick up the bill, which will add to their incentive to reduce, so far as possible, incidents of fraud.

The noble Baroness then referred to confirmation of payee. She is quite right: at the moment, an electronic payment is processed on the basis of the sort code and the account number. As from later this year, banks will have confirmation of payee—in other words, they will check the name. That means that it will be difficult for fraudsters to intercept funds designed, for example, for solicitors on conveyancing, and misdirect them.

[Lord Davies of Oldham (Lab)]

My Lords, the country is well aware of the extent to which scams and frauds have been successful in recent years, and it is an acute problem. I accept that the Government and the banks have made some progress with the voluntary code, but will the Minister undertake that, if that does not provide satisfactory protection for our people, the Government will legislate to ensure that victims get repaid?

[Lord Young of Cookham]

It is exactly because the Government were not satisfied with the progress being made that the former Home Secretary asked HMRC to inspect the police response to fraud. It responded on 2 April with 16 recommendations that the Government, together with banks and the police, are in the process of implementing. There is a range of recommendations, including a more co-ordinated national response and more support for the customer. Action Fraud is also introducing a more responsive service so that, if you report a fraud, you will get feedback from the banks; that was not necessarily the case before. I am not sure whether we need more legislation; we need to see how the initiatives I referred to work through.

Spending Review: Intergenerational Fairness and Well-being

Debate between Lord Davies of Oldham and Lord Young of Cookham

Monday 20th May 2019 Lords Chamber

[Lord Young of Cookham]

Steps were taken last year to raise the threshold at which debt starts to be repaid. However, as I said in my original reply, one of the report’s recommendations is to take this issue into account in the spending review. However, we have seen a huge reduction in unemployment among young people, with the rate among 16 to 24 year-olds having halved since 2010, which is a good record.

[Lord Davies of Oldham (Lab)]

My Lords, the Minister is being somewhat complacent in his answers to the third Question of the day. He must be aware that a large number of young people feel outrage because the scales are tilted against them not just on university fees but on the kind of jobs that he has just identified, which are often in the gig economy, where young people are exploited rather than rewarded. Does he appreciate that a great deal of the anger in our communities is being generated by this Government having presided over an economy in which, in the past decade, ordinary wage earners have had absolutely minuscule increases while the bosses of the FTSE industries have been coining fortunes?

[Lord Young of Cookham]

I am not sure that that is an intergenerational issue; rather, it is about income levels between different groups in the population. Perhaps I may put this into context. This Government have legislated to raise the retirement age, which has begun to tilt the terms of trade between the older and younger generations. Over the past 10 years, interest rates have been at a record low, which has tended to disadvantage those who have retired and may have savings, while tending to help younger people with mortgages. That is not wholly reflected in the report before us. As regards exploiting young people, in December we introduced the Good Work Plan to protect agency workers and give more rights to people on short-term contracts. Moreover, I have just received some in-flight refuelling: university fees—30 years to pay off and a new threshold of £25,000.

Taxation: Digital Publications

Debate between Lord Davies of Oldham and Lord Young of Cookham

Thursday 6th December 2018 Lords Chamber

[Lord Young of Cookham]

The Chancellor always welcomes suggestions for raising money in tax, rather than the representations which he normally gets to spend more. It is indeed the case that we plan to introduce the digital services tax in April 2020. It is designed to bring in £1.5 billion over the next four years and is targeted on the multinational companies operating in the digital sphere, to ensure that they pay appropriate tax on the value they derive from UK business. It is seen as an interim solution until we move to a global solution, and the UK is taking the lead in the OECD and G20 to secure that. I certainly note my noble friend’s suggestion that we should move ahead with it before 2020, and if we did that, there might be the resources to pay the sum of money that we might lose from zero-rating e-publications.

[Lord Davies of Oldham (Lab)]

My Lords, we expected a rather more positive response from the Government. My party made clear two years ago that it was not prepared to see VAT in any shape or form increased on cultural goods. This should be recognised as a very important dimension, particularly for the special groups of people referred to already. Could he move with some degree of urgency as far as the Chancellor is concerned? The position is now quite clear in Europe and it would look remiss if Britain were to stand out in this respect.

[Lord Young of Cookham]

I detect a certain degree of unanimity in the representations made so far. As I said, I have some sympathy with the argument that we should now equalise the tax on e-publications and conventional publications. We have had that freedom for only two days, so I hope the noble Lord will understand that we have not acted so far. However, meetings are under way with interested parties to develop the case. As I said earlier, if the Chancellor is convinced that a substantial case has been made, I am sure he will respond favourably.

Electoral Fraud

Debate between Lord Davies of Oldham and Lord Young of Cookham

Thursday 26th January 2017 Lords Chamber

[Lord Young of Cookham]

My noble friend has great expertise in this area and I listen carefully to what he says. It would be in the interest of those local authorities that have been identified as being at risk by the Electoral Commission to take part in the pilots that I have just referred to, to remove any doubts about the election results in those areas.

[Lord Davies of Oldham (Lab)]

My Lords, we all want to see electoral fraud tackled and, as the Minister has indicated, it would help to re-establish the credibility of British politics. The Minister answered a Question yesterday on voter registration, and I want to ask him whether this is not the major priority with regard to our electoral system. After all, he listed five groups that gave great cause for concern on voter registration, namely,

“black and ethnic minority groups, social tenants, tenants in the private rented sector, young people and students”.—[Official Report, 25/1/17; col. 660.]

Will the Minister give the assurance, which he did not give yesterday, that this is the main priority?

[Lord Young of Cookham]

With respect, I did give those assurances yesterday. I remind the noble Lord that there is a record number of people on the electoral register at the moment, notwithstanding the removal of all the ghost entries when we moved over to IER. I also outlined yesterday a number of initiatives that we are undertaking to drive up registration among exactly those groups the noble Lord has just referred to. We have a specific pack aimed, for example, at social tenants. We are undertaking initiatives with students, and we have a whole range of packs for young people, including one called Rock Enrol!. We are anxious to do all we can to increase the numbers of those who register and then increase the turnout at elections.

Disabled Children: Tax Credit

Debate between Lord Davies of Oldham and Lord Young of Cookham

Wednesday 30th November 2016 Lords Chamber

[Lord Young of Cookham]

I am grateful to the noble Lord for that suggestion. HMRC will be contacting the 28,000 families directly, automatically adjusting their award and by the end of January making a lump-sum payment backdated to April 2016. I am sure his suggestion of a future change to the law will be looked at sympathetically in order to try to streamline the system and to avoid the problems that he has identified in his Question.

[Lord Davies of Oldham (Lab)]

My Lords, the Government acknowledge the administrative error in the failure to pay the full entitlement for five years. I want to know, as I am sure does the House, on what principle the decision was taken by the Government, knowing that the families have no recourse to law, that the Treasury should shoulder something less than 10% of the total cost and the families should bear 90%.

[Lord Young of Cookham]

That is a question that I asked myself earlier this morning. The answer is that HMRC cannot by law backdate beyond the present tax year except in exceptional circumstances, and the circumstances where someone has failed to claim do not qualify. So there would be a risk of legal challenge were HMRC to compensate people in the way that the noble Lord has suggested.

Infrastructure Improvements: Funding

Debate between Lord Davies of Oldham and Lord Young of Cookham

Wednesday 23rd November 2016 Lords Chamber

[Lord Young of Cookham]

There is only one answer for my noble friend: I will write to him.

[Lord Davies of Oldham (Lab)]

My Lords, on the related issue of research and development, of course we welcome what the Chancellor said earlier today on the proposed increase of £2 billion up to the year 2020. However, does the Minister accept that even with this commitment, if it is realised, the United Kingdom will still be below the OECD average expenditure in this area and below the 3% of GDP that the OECD recommends to all developed countries?

[Lord Young of Cookham]

Again, the noble Lord is somewhat harsh in his judgment. I very much hope he will welcome the extra money that has been found at a time of great difficulty for investment in research and development.

Royal Bank of Scotland: Small Businesses

Debate between Lord Davies of Oldham and Lord Young of Cookham

Tuesday 15th November 2016 Lords Chamber

[Lord Young of Cookham]

I endorse what the noble Baroness has just said about whistleblowers who put their careers at risk in order to bring malpractice into the public domain. It is not just the fees that are going to be compensated; direct losses will also be eligible for compensation, as will consequential losses where these are directly attributable to the actions of RBS. Established legal principles will be used to determine whether a consequential loss is factually and legally attributable to it. So it is not just the fees; it is direct losses as a result.

[Lord Davies of Oldham (Lab)]

My Lords, the Minister will recognise that the bank was bailed out by the taxpayer. Its malfeasances over the last few years—which have led to a very significant drop in its share price—mean that taxpayers are facing a very raw deal if they have to restore the bank fully at some stage in the future. The Minister must appreciate that, even in this latest examination of the issues which he has identified today, there are anxieties that market-sensitive information was leaked. Has the nation not had enough of really poor behaviour by this bank which necessitates more forthright action?

[Lord Young of Cookham]

The review covers the period 2008 to 2013, so I am not sure whether the point about malfeasances by the bank is particularly for one of the parties in this House. It is the Government’s intention, in due course, to return RBS to the private sector. That is not immediately practicable at the moment —the issue of Williams & Glyn has not been resolved and there are outstanding legal issues in the United States—but we hope to return the bank to the private sector in due course.

I am not sure to what the noble Lord is referring in his point about leaks. In a letter to the Treasury Select Committee, Tom Scholar has firmly refuted any evidence of inappropriate behaviour by the Treasury. If the noble Lord is referring to action by RBS, that is a matter for RBS.

Brexit: Economic Impact

Debate between Lord Davies of Oldham and Lord Young of Cookham

Tuesday 18th October 2016 Lords Chamber

[Lord Young of Cookham]

I am grateful to my noble friend for his support to the extent that he suggests there would be no great advantage in redoing this exercise. One of the things this exercise did not do was take into account any intervention by the Bank of England or Government after the decision. Since then we have seen monetary initiatives by the Bank of England, and the Chancellor has made it clear that in his Autumn Statement he is minded to take measures to protect the economy. For those reasons, there is no particular advantage in updating the forecast—which was not out of line with other forecasts made at the time.

[Lord Davies of Oldham (Lab)]

My Lords, does it not become apparent that, with yet another wave of the ministerial hand, the Osborne legacy is being swept away and the Government are treading down paths they are unprepared to define? The Minister will have noticed that apart from the noble Lord, Lord Lawson, who can scarcely be defined as an independent voice, the two voices that have been expressed from this House with some force in recent weeks have been those of the noble Lords, Lord Hannay and Lord Kerr, both of whom have a vast amount of insight into the European Community and should be listened to carefully. Can we get one thing from the Government? I know they are prepared to say very little about what is meant to develop over the next few months and years, but can we get from them a commitment to the single market? Are all analysts not absolutely clear that abandoning the single market will be detrimental to livelihoods, to jobs and to public services? Therefore, should the Minister not at least say that the Government are seeking to protect, as far as they can, British membership of the single market?

[Lord Young of Cookham]

I had hoped to get through this exchange without saying the Government do not provide a running commentary on negotiations. However, the noble Lord has not just asked for a running commentary but asked me to predict the result. The answer is no, I cannot give any of those commitments, apart from the one he asked about at the end. We will of course use our best endeavours to secure access for goods and services from the UK into the European Union.

High-Cost Credit and Debt Management

Debate between Lord Davies of Oldham and Lord Young of Cookham

Monday 10th October 2016 Lords Chamber

[Lord Young of Cookham]

If the calls come from overseas, obviously the response that we can take in this country is limited. But if they are calling on behalf of companies based in this country, we can take action because a high-cost credit or debt management company that takes information from a telephone company based overseas has a responsibility to make sure that that overseas company acted in accordance with the code in this country. So we can get at them through the companies based here.

[Lord Davies of Oldham (Lab)]

My Lords, how soon does the Minister expect that the change to the FCA will produce action? This problem has been with us and with large numbers of our fellow citizens for a very long time and the Government are saying, “We need a code”. We know exactly what these companies are doing wrong. It is effective identification and then punishment that are required.

[Lord Young of Cookham]

The FCA has brought right to the front of the queue the process of authorising the firms that the noble Lord referred to. It is going through that process as we speak and hopes to complete it relatively soon, depending on progress. As I said, if those firms do not meet the high standards set by the FCA, they will not be allowed to continue trading.

Tax Credits: Concentrix

Debate between Lord Davies of Oldham and Lord Young of Cookham

Wednesday 14th September 2016 Lords Chamber

[Lord Davies of Oldham (Lab)]

My Lords, the House will be grateful to hear that the contract is to be terminated, but it is quite clear that Concentrix will still be involved over the next seven months, despite its deplorable record. We should recognise just how badly affected those who are dependent on tax credits have been through the operations of this company.

Only yesterday, the House assented to the Finance Bill, in which cuts to corporation tax and capital gains tax which benefit relatively few were agreed, but today, we have this appalling story of ordinary people—there are 4 million and more people dependent on tax credits—vulnerable to the operation of an American company which provides a public service for profit and has made very many mistakes. We need to hear from the noble Lord about not just the patch-up over the next seven months but the future operation of tax credits.

[Lord Young of Cookham]

I am grateful to the noble Lord for his comments. I begin by apologising to all those who have been distressed by an unacceptable level of service, to which the noble Lord referred. I know from my experience in another place how distressing it can be if families who are, by definition, on low incomes, suddenly find that a flow of income is stopped. Referring to the action now being taken, a priority is to deal with those cases where payments have been stopped. As I said, HMRC has now seconded another 150 staff to tackle the backlog of cases, to see whether we can get them up to date. As for the future, the contract will not be retendered. At the moment, the bulk of the work is being done by HMRC and, as from next May, it will do all the work. Looking ahead, over the next six or seven years, those on tax credits will move over to universal credit, and that system will incorporate the lessons we have learned running the procedures under tax credits.