Banks: Cash Withdrawals

Debate between Lord Young of Cookham and Lord Davies of Oldham

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 Young of Cookham and Lord Davies of Oldham

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 Young of Cookham and Lord Davies of Oldham

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 Young of Cookham and Lord Davies of Oldham

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 Young of Cookham and Lord Davies of Oldham

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.