Asked by: Baroness Altmann (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government (1) how much money has been invested in individual savings accounts (ISAs) in total, (2) how much money has been invested in ISAs by different age groups, (3) how many individuals have invested in ISAs, and (4) what is the average amount invested in ISAs per person.
Answered by Lord Agnew of Oulton
HMRC produces an Individual Savings Accounts (ISAs) tables document as part of its Annual savings statistics publication on Gov.uk.
The amount invested in ISAs, how many individuals have invested in ISAs and the average amount invested in ISAs is in table 9.4. This information is on a per account basis; individuals may sign up to multiple ISA accounts.
The number of individuals that have invested in ISAs and average amount invested per person for the 2018 to 2019 tax year can be found in table 9.11.
An age breakdown of the money invested in ISAs can only be made available at a disproportionate cost. However, table 9.11 gives a breakdown of ISA market values by age.
The ISA Tables are found on the GOV.UK website: https://www.gov.uk/government/statistics/annual-savings-statistics
Asked by: Baroness Altmann (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government (1) what rate of interest is applied to refunds of public sector workers’ partner pension contributions if the pension holder retires without a partner, and (2) how much money has been refunded to such pension holders for each of the past ten years.
Answered by Lord Agnew of Oulton
Partner pension contributions are refunded with interest to members of the Classic section of the PCSPS when they leave at or after age 60 with immediate payment of pension in full if they neither married nor entered a civil partnership throughout their service, or in part for members who have been married or in a civil partnership for part of their service. The interest rate applied is currently 0.25%.
Partner pension contributions can also be refunded in the 1981 Judicial Pension Scheme and the Judicial Pension Scheme 1993 (JUPRA). The interest rate applied in the 1981 Judicial Pension Scheme is 4% while the interest rates used in JUPRA follow those in the PCSPS.
Data on refunds in the PCSPS in the years from 2015 to 2021 (year to date) is as follows:
Year | Total paid as WPS refund |
2015 | £26,939,123.32 |
2016 | £30,835,627.79 |
2017 | £26,790,088.99 |
2018 | £25,628,031.08 |
2019 | £25,314,289.97 |
2020 | £20,698,765.32 |
2021 | £19,692,619.50 |
Refunds in years prior to 2015 occurred under a previous administrative arrangement and so data could only be collected to a longer timeline.
Similarly, administrators for the judicial pension schemes do not keep cumulative records of refunds awarded by year, and the second part of the question could thus only be answered to a longer timeline.
Asked by: Baroness Altmann (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what estimate have they made of the number of (1) women, and (2) men, earning less than the personal tax threshold who were automatically enrolled in workplace pension schemes which operate on net pay basis in each tax year since 2017–18.
Answered by Lord Agnew of Oulton
HMRC cannot determine which individuals have been automatically enrolled in a workplace pension. However, HMRC estimates that 1.5m individuals earning below the personal allowance in 2018-19 made workplace pension contributions via Real time Information (RTI) using net pay arrangements. Around 75% of these individuals are estimated to be female and 25% are estimated to be male.The personal allowance in 2018-19 was £11,850. HMRC’s Survey of Personal Income (SPI) and administrative data was used to produce the estimates. The 2018-19 SPI (published in March 2021) is the latest year available. The SPI is published annually.
Asked by: Baroness Altmann (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what plans they have to implement legal obligations on (1) pension scheme trustees, (2) pension advisers, and (3) pension scheme providers, to ensure that the take-home pay of members of auto-enrolment pension schemes take-home pay is not reduced as a direct result of the pension scheme’s tax relief administration system.
Answered by Lord Agnew of Oulton
The Government recognises the different impacts of the two systems of paying pension tax relief on pension contributions for workers earning below the personal allowance. The Government committed in its manifesto to review this issue and published a Call for Evidence on 21 July 2020. The Call for Evidence set out the Government’s views on proposals already put forward by stakeholders, invited further proposals, and sought views on the operation of the relief at source method of tax relief for pension contributions.
The Call for Evidence is now closed. The Government is carefully analysing this issue and the responses received to understand what deliverable options for change may exist. These responses have raised technical points that we are continuing to explore with HMRC and others. The Government will respond to the Call for Evidence in due course.
Asked by: Baroness Altmann (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what plans do they have to implement legal obligations on employers (1) to select a suitable pension scheme for low-paid workers, and (2) to inform those workers about the lower take-home pay as a result of enrolling onto a Net Pay scheme.
Answered by Lord Agnew of Oulton
The Government recognises the different impacts of the two systems of paying pension tax relief on pension contributions for workers earning below the personal allowance. The Government committed in its manifesto to review this issue and published a Call for Evidence on 21 July 2020. The Call for Evidence set out the Government’s views on proposals already put forward by stakeholders, invited further proposals, and sought views on the operation of the relief at source method of tax relief for pension contributions.
The Call for Evidence is now closed. The Government is carefully analysing this issue and the responses received to understand what deliverable options for change may exist. These responses have raised technical points that we are continuing to explore with HMRC and others. The Government will respond to the Call for Evidence in due course.
Asked by: Baroness Altmann (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what steps they are taking to ensure that future regulation of ‘buy now, pay later’ products sufficiently protects consumers.
Answered by Lord Agnew of Oulton
The Government will legislate in a proportionate way to counter the detriment that customers could face as use of Buy Now Pay Later products grows. The Government is engaging stakeholders and will publicly consult to gather views as it develops its approach.
Asked by: Baroness Altmann (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government when they will begin the review process of the Payment Services Regulations 2017, in accordance with section 158 of those regulations.
Answered by Lord Agnew of Oulton
As noted in Regulation 158 of the Payments Services Regulations 2017, HM Treasury must from time to time carry out a review of the regulatory provision contained in these Regulations and publish the report setting out the conclusions of the review. The first report under this regulation must be published on or before 13 January 2023. HM Treasury will conduct this review in accordance with Regulation 158.
Asked by: Baroness Altmann (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what action they have taken, with the Financial Conduct Authority, to enforce the implementation of the Contingent Reimbursement Model Code by the Code's signatories.
Answered by Lord Agnew of Oulton
The Government is committed to tackling fraud and ensuring that victims of Authorised Push Payment (APP) scams are protected.
The Government recognises the work industry has undertaken to date, including the introduction of a voluntary reimbursement Code, which has demonstrably had a beneficial impact. However, the Code, whilst improving matters, comes with limitations, including disparity in how different payment service providers are interpreting their obligations under it, as well is its lack of comprehensive cover across providers.
The Government therefore welcomed the publication of the Payment Systems Regulator’s (PSR) call for views on APP scams in February 2021, which set out various potential measures for reducing APP scams and improving customer outcomes. The Government is of the view that the introduction of Faster Payments Service rules setting reimbursement requirements on all scheme participants is the best possible solution to the issue of APP scams; this will ensure the rules underpinning Faster Payments are fit for purpose.
The PSR’s call for views has now closed and the Government is engaging with the PSR on next steps, including considering what further actions may be necessary to make progress on this issue.
The Financial Conduct Authority (FCA) works closely with the Government and PSR through a range of channels to help combat APP scams. In January 2019, the FCA changed its rules to provide victims of alleged APP scams with prompt and fair complaints resolution, and access to dispute resolution through the Financial Ombudsman Service for complaints against payment service providers which receive payments relating to the alleged scam.
In February 2021, the FCA also updated its formal guidance for firms on the fair treatment of vulnerable customers to reinforce the significance of the Code’s provisions on how firms should take into account vulnerability in cases of APP scams.
Asked by: Baroness Altmann (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government whether the Financial Conduct Authority has (1) prepared, or (2) submitted to the Treasuy, any reports on (a) the supervision of the implementation of the Contingent Reimbursement Model Code by its signatories to date, and (b) how the Code is operating.
Answered by Lord Agnew of Oulton
The Government is committed to tackling fraud and ensuring that victims of Authorised Push Payment (APP) scams are protected.
The Government recognises the work industry has undertaken to date, including the introduction of a voluntary reimbursement Code, which has demonstrably had a beneficial impact. However, the Code, whilst improving matters, comes with limitations, including disparity in how different payment service providers are interpreting their obligations under it, as well is its lack of comprehensive cover across providers.
The Government therefore welcomed the publication of the Payment Systems Regulator’s (PSR) call for views on APP scams in February 2021, which set out various potential measures for reducing APP scams and improving customer outcomes. The Government is of the view that the introduction of Faster Payments Service rules setting reimbursement requirements on all scheme participants is the best possible solution to the issue of APP scams; this will ensure the rules underpinning Faster Payments are fit for purpose.
The PSR’s call for views has now closed and the Government is engaging with the PSR on next steps, including considering what further actions may be necessary to make progress on this issue.
The Financial Conduct Authority (FCA) works closely with the Government and PSR through a range of channels to help combat APP scams. In January 2019, the FCA changed its rules to provide victims of alleged APP scams with prompt and fair complaints resolution, and access to dispute resolution through the Financial Ombudsman Service for complaints against payment service providers which receive payments relating to the alleged scam.
In February 2021, the FCA also updated its formal guidance for firms on the fair treatment of vulnerable customers to reinforce the significance of the Code’s provisions on how firms should take into account vulnerability in cases of APP scams.
Asked by: Baroness Altmann (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government whether they intend to legislate to enable the Payment Services Regulator to mandate protection against authorised push payment fraud; and what plans they have to introduce new Faster Payments Services rules.
Answered by Lord Agnew of Oulton
The Government is committed to tackling fraud and ensuring that victims of Authorised Push Payment (APP) scams are protected.
The Government recognises the work industry has undertaken to date, including the introduction of a voluntary reimbursement Code, which has demonstrably had a beneficial impact. However, the Code, whilst improving matters, comes with limitations, including disparity in how different payment service providers are interpreting their obligations under it, as well is its lack of comprehensive cover across providers.
The Government therefore welcomed the publication of the Payment Systems Regulator’s (PSR) call for views on APP scams in February 2021, which set out various potential measures for reducing APP scams and improving customer outcomes. The Government is of the view that the introduction of Faster Payments Service rules setting reimbursement requirements on all scheme participants is the best possible solution to the issue of APP scams; this will ensure the rules underpinning Faster Payments are fit for purpose.
The PSR’s call for views has now closed and the Government is engaging with the PSR on next steps, including considering what further actions may be necessary to make progress on this issue.
The Financial Conduct Authority (FCA) works closely with the Government and PSR through a range of channels to help combat APP scams. In January 2019, the FCA changed its rules to provide victims of alleged APP scams with prompt and fair complaints resolution, and access to dispute resolution through the Financial Ombudsman Service for complaints against payment service providers which receive payments relating to the alleged scam.
In February 2021, the FCA also updated its formal guidance for firms on the fair treatment of vulnerable customers to reinforce the significance of the Code’s provisions on how firms should take into account vulnerability in cases of APP scams.