Asked by: Angela Eagle (Labour - Wallasey)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when HMRC plans to respond to the correspondence from the hon. Member for Wallasey of 13 October 2023 on an identity theft matter relating to a tax rebate.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
The correspondence was received in HM Revenue & Customs (HMRC) on 16th October 2023.
HMRC apologises for the delay. They replied on 23rd November 2023.
Asked by: Angela Eagle (Labour - Wallasey)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when his Department plans to lay before Parliament legislative proposals relating to the consultation entitled Regulation of Buy-Now Pay Later: consultation on draft legislation.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Government’s consultation on proposed draft legislation to bring Buy-Now Pay-Later into regulation closed in April. The Government has been carefully considering stakeholder feedback to this consultation and intends to publish a consultation response in which it will set out next steps, in due course.
Asked by: Angela Eagle (Labour - Wallasey)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when his Department plans to publish the outcome of the consultation entitled Regulation of Buy-Now Pay Later: consultation on draft legislation.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Government’s consultation on proposed draft legislation to bring Buy-Now Pay-Later into regulation closed in April. The Government has been carefully considering stakeholder feedback to this consultation and intends to publish a consultation response in which it will set out next steps, in due course.
Asked by: Angela Eagle (Labour - Wallasey)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the effect of not uprating the threshold for the High Income Child Benefit Charge in line with inflation on families during the cost of living crisis.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government knows that families across the UK are worried about the cost of living. This is why the Government has provided support to households for their energy bills through the £400 Energy Bill Support Scheme, the £150 Council Tax rebate (for households in Council Tax bands A, B, C and D), and the Energy Price Guarantee. The Energy Price Guarantee will be extended until April 2024, and is expected to save the typical household in Great Britain around £500 in 2023-24.
The Government considers that the HICBC threshold of £50,000 remains appropriate.
Nevertheless, on targeted support, in 2023-24, there will be an additional Cost of Living Payment of £900 for those on means-tested benefits, £300 for pensioner households, and £150 for individuals on disability benefits.
Asked by: Angela Eagle (Labour - Wallasey)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, for what reason his Department has decided not to uprate the threshold for the High Income Child Benefit Charge in line with inflation.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government knows that families across the UK are worried about the cost of living. This is why the Government has provided support to households for their energy bills through the £400 Energy Bill Support Scheme, the £150 Council Tax rebate (for households in Council Tax bands A, B, C and D), and the Energy Price Guarantee. The Energy Price Guarantee will be extended until April 2024, and is expected to save the typical household in Great Britain around £500 in 2023-24.
The Government considers that the HICBC threshold of £50,000 remains appropriate.
Nevertheless, on targeted support, in 2023-24, there will be an additional Cost of Living Payment of £900 for those on means-tested benefits, £300 for pensioner households, and £150 for individuals on disability benefits.
Asked by: Angela Eagle (Labour - Wallasey)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the Government plans to uprate the threshold for the High Income Child Benefit Charge in line with inflation.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government is committed to managing the public finances in a disciplined and responsible way, by targeting support where it is most needed.
The Government considers that the HICBC threshold of £50,000 remains appropriate at the moment. Maintaining the threshold means that the Government supports the majority of families, whilst ensuring the fiscal position remains sustainable.
Nevertheless, the Government knows that families across the UK are worried about the cost of living. This is why the Government has provided support to households for their energy bills through the £400 Energy Bill Support Scheme, the £150 Council Tax rebate (for households in Council Tax bands A, B, C and D), and the Energy Price Guarantee. The Energy Price Guarantee will be extended until April 2024, and is expected to save the typical household in Great Britain around £500 in 2023-24.
Asked by: Angela Eagle (Labour - Wallasey)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has made an assessment of the potential merits of capping profit margins on standard variable rate mortgages.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Financial Conduct Authority’s (FCA) review into mortgage prisoners, published in November 2021, found that there are 47,000 mortgage prisoners who might benefit from switching to a new mortgage deal but are considered too high risk to do so, despite being up to date with payments.
The review makes clear that the reason mortgage prisoners are unable to switch are varied and complex. As such, there is no silver bullet to address the circumstances of this entire population of mortgage holders without being unfair to other borrowers.
The Government has already worked with the FCA to implement changes to its mortgage lending rules, removing the regulatory barrier that prevented some mortgage prisoners, who otherwise may have been able to switch, from accessing new products. These rules should allow customers to switch to an active lender as long as they meet the lender’s risk appetite and certain criteria, such as not looking to borrow more.
Ultimately, the pricing and availability of mortgages is a commercial decision for lenders in which the Government does not intervene. As such, the Government cannot force lenders to lend to borrowers that sit outside of their risk appetite.
Any further work on this issue must consider the impact and practicality of solutions and their effects on the wider mortgage market, including the resilience of firms and fairness to other borrowers. There is no evidence, for instance, that consumers have experienced detriment that would be resolved by an extension of the regulatory perimeter. It is also worth noting that the Standard Variable Rates (SVRs) charged by inactive firms are in line with those paid by borrowers in the active market. The Government remains open to practical and proportionate solutions to help mortgage prisoners that do not pose unacceptable financial stability risks, and are not unfair to other borrowers in the mortgage market.
More broadly, the Government understands that people across the UK are worried about the cost of living. That is why we have announced £37 billion of support for the cost of living this financial year. We have also taken decisive action to support millions of households with rising energy costs this winter through the Energy Price Guarantee and the Energy Bill Relief Scheme. Millions of the most vulnerable households will receive £1,200 of support this year, with additional support for pensioners and those claiming disability benefits.
When mortgage borrowers are in financial difficulty and struggling to pay their mortgage, FCA guidance requires firms to provide support through tailored forbearance options. The Government also offers support to borrowers through Support for Mortgage Interest (SMI) loans to homeowners in receipt of an income-related benefit, and protection in the courts under the Mortgage Pre-Action Protocol.
Asked by: Angela Eagle (Labour - Wallasey)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential merits of introducing a moratorium on interest rate rises for those with pre-2008 mortgages in non-lending closed books.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Financial Conduct Authority’s (FCA) review into mortgage prisoners, published in November 2021, found that there are 47,000 mortgage prisoners who might benefit from switching to a new mortgage deal but are considered too high risk to do so, despite being up to date with payments.
The review makes clear that the reason mortgage prisoners are unable to switch are varied and complex. As such, there is no silver bullet to address the circumstances of this entire population of mortgage holders without being unfair to other borrowers.
The Government has already worked with the FCA to implement changes to its mortgage lending rules, removing the regulatory barrier that prevented some mortgage prisoners, who otherwise may have been able to switch, from accessing new products. These rules should allow customers to switch to an active lender as long as they meet the lender’s risk appetite and certain criteria, such as not looking to borrow more.
Ultimately, the pricing and availability of mortgages is a commercial decision for lenders in which the Government does not intervene. As such, the Government cannot force lenders to lend to borrowers that sit outside of their risk appetite.
Any further work on this issue must consider the impact and practicality of solutions and their effects on the wider mortgage market, including the resilience of firms and fairness to other borrowers. There is no evidence, for instance, that consumers have experienced detriment that would be resolved by an extension of the regulatory perimeter. It is also worth noting that the Standard Variable Rates (SVRs) charged by inactive firms are in line with those paid by borrowers in the active market. The Government remains open to practical and proportionate solutions to help mortgage prisoners that do not pose unacceptable financial stability risks, and are not unfair to other borrowers in the mortgage market.
More broadly, the Government understands that people across the UK are worried about the cost of living. That is why we have announced £37 billion of support for the cost of living this financial year. We have also taken decisive action to support millions of households with rising energy costs this winter through the Energy Price Guarantee and the Energy Bill Relief Scheme. Millions of the most vulnerable households will receive £1,200 of support this year, with additional support for pensioners and those claiming disability benefits.
When mortgage borrowers are in financial difficulty and struggling to pay their mortgage, FCA guidance requires firms to provide support through tailored forbearance options. The Government also offers support to borrowers through Support for Mortgage Interest (SMI) loans to homeowners in receipt of an income-related benefit, and protection in the courts under the Mortgage Pre-Action Protocol.
Asked by: Angela Eagle (Labour - Wallasey)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has made an assessment of the potential merits of moving mortgage prisoners’ mortgages to active lenders.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Financial Conduct Authority’s (FCA) review into mortgage prisoners, published in November 2021, found that there are 47,000 mortgage prisoners who might benefit from switching to a new mortgage deal but are considered too high risk to do so, despite being up to date with payments.
The review makes clear that the reason mortgage prisoners are unable to switch are varied and complex. As such, there is no silver bullet to address the circumstances of this entire population of mortgage holders without being unfair to other borrowers.
The Government has already worked with the FCA to implement changes to its mortgage lending rules, removing the regulatory barrier that prevented some mortgage prisoners, who otherwise may have been able to switch, from accessing new products. These rules should allow customers to switch to an active lender as long as they meet the lender’s risk appetite and certain criteria, such as not looking to borrow more.
Ultimately, the pricing and availability of mortgages is a commercial decision for lenders in which the Government does not intervene. As such, the Government cannot force lenders to lend to borrowers that sit outside of their risk appetite.
Any further work on this issue must consider the impact and practicality of solutions and their effects on the wider mortgage market, including the resilience of firms and fairness to other borrowers. There is no evidence, for instance, that consumers have experienced detriment that would be resolved by an extension of the regulatory perimeter. It is also worth noting that the Standard Variable Rates (SVRs) charged by inactive firms are in line with those paid by borrowers in the active market. The Government remains open to practical and proportionate solutions to help mortgage prisoners that do not pose unacceptable financial stability risks, and are not unfair to other borrowers in the mortgage market.
More broadly, the Government understands that people across the UK are worried about the cost of living. That is why we have announced £37 billion of support for the cost of living this financial year. We have also taken decisive action to support millions of households with rising energy costs this winter through the Energy Price Guarantee and the Energy Bill Relief Scheme. Millions of the most vulnerable households will receive £1,200 of support this year, with additional support for pensioners and those claiming disability benefits.
When mortgage borrowers are in financial difficulty and struggling to pay their mortgage, FCA guidance requires firms to provide support through tailored forbearance options. The Government also offers support to borrowers through Support for Mortgage Interest (SMI) loans to homeowners in receipt of an income-related benefit, and protection in the courts under the Mortgage Pre-Action Protocol.
Asked by: Angela Eagle (Labour - Wallasey)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has made an assessment of the potential merits of incorporating closed book mortgages into existing mortgage regulatory frameworks.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Financial Conduct Authority’s (FCA) review into mortgage prisoners, published in November 2021, found that there are 47,000 mortgage prisoners who might benefit from switching to a new mortgage deal but are considered too high risk to do so, despite being up to date with payments.
The review makes clear that the reason mortgage prisoners are unable to switch are varied and complex. As such, there is no silver bullet to address the circumstances of this entire population of mortgage holders without being unfair to other borrowers.
The Government has already worked with the FCA to implement changes to its mortgage lending rules, removing the regulatory barrier that prevented some mortgage prisoners, who otherwise may have been able to switch, from accessing new products. These rules should allow customers to switch to an active lender as long as they meet the lender’s risk appetite and certain criteria, such as not looking to borrow more.
Ultimately, the pricing and availability of mortgages is a commercial decision for lenders in which the Government does not intervene. As such, the Government cannot force lenders to lend to borrowers that sit outside of their risk appetite.
Any further work on this issue must consider the impact and practicality of solutions and their effects on the wider mortgage market, including the resilience of firms and fairness to other borrowers. There is no evidence, for instance, that consumers have experienced detriment that would be resolved by an extension of the regulatory perimeter. It is also worth noting that the Standard Variable Rates (SVRs) charged by inactive firms are in line with those paid by borrowers in the active market. The Government remains open to practical and proportionate solutions to help mortgage prisoners that do not pose unacceptable financial stability risks, and are not unfair to other borrowers in the mortgage market.
More broadly, the Government understands that people across the UK are worried about the cost of living. That is why we have announced £37 billion of support for the cost of living this financial year. We have also taken decisive action to support millions of households with rising energy costs this winter through the Energy Price Guarantee and the Energy Bill Relief Scheme. Millions of the most vulnerable households will receive £1,200 of support this year, with additional support for pensioners and those claiming disability benefits.
When mortgage borrowers are in financial difficulty and struggling to pay their mortgage, FCA guidance requires firms to provide support through tailored forbearance options. The Government also offers support to borrowers through Support for Mortgage Interest (SMI) loans to homeowners in receipt of an income-related benefit, and protection in the courts under the Mortgage Pre-Action Protocol.