Packaged Retail and Insurance-based Investment Products (Retail Disclosure) (Amendment) Regulations 2024
Debate between Baroness Blake of Leeds and Baroness Altmann
Baroness Blake of Leeds (Lab)
I hear the passion in the noble Baroness’s voice—I think we all can—and I appreciate the frustrations expressed. But, as set out and agreed by this Parliament, it is for the regulator to set detailed rules in consultation with the industry. That is the position we are in.
Baroness Altmann (Non-Afl)
I am sorry—I know the Minister would like to make progress, but this is a relevant point. She talked about an appropriate transition period and tailored disclosures required to disclose the costs, because these funds are marketed directly to retail investors. It is not clear to me in what manner the direct marketing occurs, so I would be grateful if she could write to me on that.
Does the Minister believe that there are actual investor costs of holding the shares in a listed investment trust, any more than there are costs of holding the shares of another company that is listed on the UK market? That is the current industry practice—to tell investors that they are charged directly for holding these company shares, which is not true. The noble Baroness, Lady Bowles, and I are trying to understand whether the Government and the regulator recognise that consumers do not have such direct costs and, therefore, recognise the importance of not telling them that they do as quickly as possible—or whether they somehow feel that this is not like another company and, even though there are not direct investor costs, the investor needs to be told that there are in some way. I am a little confused.
Baroness Blake of Leeds (Lab)
I thank the noble Baroness. I will write to her to lay out the answers to the questions that she raises. I refer her back to the comments I made about costs earlier in answering.
To expand slightly on where we were before, this is an important moment for everyone. It is appropriate as we move away from EU language to reflect the significant reform of the new regime, which will be tailored to UK firms and markets. We should make sure that we recognise where we are in that process. In practice, the definition of consumer composite investments is closely aligned with the EU PRIIPs. The regime will continue to apply to products where the amount repayable to the investor is subject to fluctuations because of exposure to reference values or the performance of assets not directly purchased by the investor.
Carer’s Allowance: Repayments
Debate between Baroness Blake of Leeds and Baroness Altmann
Baroness Altmann
To ask His Majesty’s Government how they plan to assist family carers who are required to make repayments of the Carer’s Allowance plus additional fines or penalties.
Baroness Blake of Leeds (Lab)
I start my reply by paying tribute to the millions of unpaid carers across this country who make such a vital contribution every day. We are taking urgent action to identify what has happened and why, so we can resolve this issue. We carefully balance our duty to the taxpayer to recover overpayments and ensuring that repayment of debt is affordable and sustainable, working with anyone who is struggling with their repayment terms.
Baroness Altmann (Con)
I welcome the noble Baroness to the Front Bench and thank her for her reply. I am delighted to hear that the Government are reviewing this. At the moment, these unpaid carers get £81.90 a week and must be caring for at least 35 hours a week, which means a maximum of £2.34 per hour. They must also be earning under £151. Is this really the value that our country places on people looking after loved ones? Even worse, over 130,000 are being investigated, with their benefits being clawed back, being fined thousands of pounds, plunged into debt and having to sell their homes. It has also emerged that the DWP has written to people, threatening them with fines that may increase if they appeal. I know that the noble Baroness would not wish this to be happening; none of us in this House would. Will she consider suspending investigations and new demands pending a proper review of these practices?
Baroness Blake of Leeds (Lab)
I thank the noble Baroness, Lady Altmann, and also for her numerous contributions on this issue in debates, some of which I have been lucky to take part in over the last few months. Today is an important day, obviously, since Carers UK has published its report this morning, which is what I presume has prompted the Question. I am very pleased to announce to the House that, as we speak, the Minister of State for Social Security and Disability is meeting representatives from Carers UK and other related organisations, as well as—most importantly, given their absolute, central part in this whole situation—meeting with carers themselves. It is important that we wait to hear the outcome as we anticipate the review that the Minister of State is putting into place, so that we can swiftly move on to address the issues that the noble Baroness has brought up.