Asked by: Fleur Anderson (Labour - Putney)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to help ensure the independence of financial services regulators.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The legislative framework underpinning financial services regulation in the UK provides for the regulators to be independent of government in their operational decisions.
Following the Future Regulatory Framework Review the regulators will take on significant new rulemaking responsibilities. It is important to balance these new responsibilities for the independent regulators with clear accountability, appropriate democratic input, and transparent oversight. Through the Financial Services and Markets Bill the government is bringing forward measures to achieve this balance.
Asked by: Fleur Anderson (Labour - Putney)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what impact assessment the Government has carried out on the impact of Solvency II reforms on pensions.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Government is committed to ensuring that the insurance regime remains a safe home for people’s pensions. As well as that, UK insurers remain internationally competitive.
The Treasury's consultation on the prudential regulatory regime for insurers known as Solvency II closed on 21 July 2022. It included questions seeking evidence of the impact reforms would have on policyholder protection and annuity prices as well as other objectives, including investment for growth. The Government will set out its assessment of this evidence when it publishes a response to the consultation later this calendar year.
The Solvency II consultation document can be found here: https://www.gov.uk/government/consultations/solvency-ii-review-consultation
Asked by: Fleur Anderson (Labour - Putney)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he make will make it his policy to pause the Financial Services and Markets Bill.
Answered by Richard Fuller
Second Reading of the Financial Services and Markets Bill will take place on Wednesday 7 September. The Government is committed to progressing the Bill.
Asked by: Fleur Anderson (Labour - Putney)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what financial support he is providing for individuals who are suffering financially from the cost of electricity to power life-saving medical equipment in their homes.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
Living with a long-term illness or disability can impact significantly on the cost of living. This is why the Government invests heavily in supporting disabled people both in and out of work through the welfare system.
The Government is committed to help protect customers from price spikes, especially vulnerable customers and is very aware of the difficulties that consumers are experiencing as a result of the rise in energy prices. The Government is providing significant financial support – up to £350 – to the majority of households, which will cover more than half of the April rise in energy bills for the average household. This support is worth £9.1bn in 2022-23.
The Government is providing further support for vulnerable households, elderly and low-income people through the Warm Home Discount - which is being expanded by a third to 3m people and increased to £150 – in addition to the continuation of Winter Fuel Payments and Cold Weather Payments.
The Government is also providing an additional £500m for the Household Support Fund from April, on top of the £500m we have already provided since October 2021, bringing total funding to £1 billion. In England, Local Authorities are best placed to direct this help to those in their areas who need it most and will receive £421m, whilst the devolved administrations will receive £79m through the Barnett formula.
The Government continues to support vulnerable groups through NHS
services. The additional funding announced at the Spending Review, made possible by the new Health and Social Care Levy, means that the NHS resource budget will increase to over £160 billion in 2024-25. These investments will allow the NHS to continue providing the services people need.
Asked by: Fleur Anderson (Labour - Putney)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will increase the £450,000 cap of the Lifetime ISA for London residents given that the average property price in London is £667,000.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Lifetime ISA is intended to support younger people to save for their first home or for later life by offering a generous government bonus of 25% on up to £4,000 of savings each year. These funds, including the government bonus, can be used to purchase a first home up to the value of £450,000.
This price cap remains above the average price paid by first-time buyers for all regions of the UK, except for inner London where property prices are distorted by boroughs with significant property values. The Government therefore considers that the £450,000 price cap is suitable to support the majority of first-time buyers across the UK, who typically purchase less expensive properties than other buyers, while also ensuring sustainable public finances. The most recent Office for Budget Responsibility forecast stated that bonus payments will have an exchequer cost of £3.5 billion between 2021 and 2027. The price cap ensures that this significant investment of public money is more precisely targeted towards households that may find it more difficult to get onto the property ladder.
First-time buyers who can purchase a home valued over £450,000 are likely to have an income significantly above that of the average household in the UK and are therefore more likely to be able to purchase a first home without the support of this scheme.
However, the Government continues to keep all aspects of savings policy under review.
Asked by: Fleur Anderson (Labour - Putney)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the impact of the recent civil service and public sector pay freeze on the disposable income and wellbeing of civil service and public sector workers.
Answered by Simon Clarke
The Government recognises that public sector workers play a vital role in the running of our economy, and in delivering our world class public services.
In the face of huge uncertainty and the unprecedented impact COVID-19 had on the economy, the Government took the difficult decision to temporarily pause pay rises for the majority of public sector workers at Spending Review 2020.
This helped protect jobs at a time of crisis and ensure fairness between the private and public sectors as the private sector saw suppressed earnings growth and increased redundancies.
The Government also protected the lowest paid, with 2.1 million public sector workers earning less than £24,000 (Full Time Equivalent) receiving a minimum £250 increase. Due to the uniquely challenging impact COVID-19 had on our health services, the Government also provided a 3% pay award to over 1 million NHS staff.
On average, those working in the public sector have a better remuneration package than those in the private sector, including substantially more generous pensions. COVID-19 has also demonstrated the significant value of job security in the public sector. The temporary freeze meant the gap between the public and private sector did not widen further.
Spending Review 2021 confirmed that all public sector workers will see pay rises across the whole Spending Review period (22/23-24/25).
Asked by: Fleur Anderson (Labour - Putney)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what proportion of self-employed workers paying taxes due to self-employment income support scheme grants are now using payment plans for their tax payments for the previous financial year.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
An estimate of the proportion of self-employed workers paying taxes due to the Self-Employment Income Support Scheme (SEISS) grants, who are now using payment plans for their tax payments for the previous financial year, is not available.
The tax paid on a SEISS grant will depend on an individual’s profits, any other taxable income, and allowances to which a person is entitled. The grants are taxable at the recipient’s rate of Income Tax in the year they were received.
The Government has implemented an unprecedented package of support for taxpayers struggling with paying tax liabilities. HMRC has scaled up its longstanding Time to Pay policy, which allows any business or individual in temporary financial difficulty to schedule their tax debts into affordable, sustainable, and tailored instalment arrangements.
Asked by: Fleur Anderson (Labour - Putney)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the impact of taxes due to self-employment income support scheme grants on the disposable income and wellbeing of self-employed workers.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
The Government has supported UK households throughout the pandemic with nearly £400 billion of COVID support, including through the Self-Employment Income Support Scheme (SEISS), which provided over £28 billion in grants to 2.9 million individuals.
The SEISS was designed to support those whose income had dropped temporarily due to COVID-19. Like self-employed income, SEISS grants are subject to Income Tax and self-employed National Insurance contributions at the recipient’s rate of Income Tax in the year the grant was received. This was set out by the Chancellor when announcing the scheme in March 2020, and in subsequent SEISS guidance throughout the scheme’s lifetime.
The Government has implemented an unprecedented package of support for taxpayers struggling with paying tax liabilities. HMRC has scaled up its longstanding Time to Pay policy, which allows any business or individual in temporary financial difficulty to schedule their tax debts into affordable, sustainable, and tailored instalment arrangements.
Anyone experiencing difficulties paying their tax bill can discuss payment options with HMRC, who are committed to supporting taxpayers through difficult times and will agree a Time to Pay arrangement wherever possible. There are further details available on GOV.UK.
Asked by: Fleur Anderson (Labour - Putney)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has made an assessment of the (a) potential merits and (b) potential environmental and financial impact of implementing a frequent flyer levy.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
Air Passenger Duty (APD) is the UK’s principal tax on the aviation sector. The tax raised £3.6 billion in 2019-20 and its primary objective is to ensure that airlines make a fair contribution to the public finances. Last year, the Government consulted on aviation tax reform and as part of this sought views on whether a frequent flyer levy could replace APD as the principal tax on the aviation sector. In the responses received to the consultation, the Government received a wide range of views on a frequent flyer levy, which it considered carefully.
Following the consultation, the Government published a response which outlined that it was minded to retain APD as the principal tax on the aviation sector, noting in particular continuing concerns around the possible administrative complexity of a frequent flyer levy and around data processing, handling and privacy.
However, in its response to the consultation, the Government announced plans to introduce two new APD distance bands for both domestic and ultra-long-haul flights. The ultra-long haul band will see an additional £4 charged on top of the revised long-haul rate for flights greater than 5,500 miles - ensuring those who fly furthest, and have the greatest impact on emissions, incur the greatest duty. These changes are due to take effect from April 2023, allowing time for the industry to plan for the changes.
More broadly, the Government has put in place a wide range of measures to support the decarbonisation of the aviation industry, including investment of £180 million to support the commercialisation of sustainable aviation fuel (SAF) plants in the UK and the launch of the Jet Zero Council which is a partnership between industry, government and academia to drive the delivery of new technologies and find innovative ways to cut aviation emissions.
Furthermore, the UK’s new Emissions Trading Scheme (ETS) covers participants from the aviation, power and industrial sectors. It sets a total annual cap on greenhouse gases emitted by these sectors. It covers domestic flights within the UK and flights from the UK to the EEA.
Asked by: Fleur Anderson (Labour - Putney)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what progress his Department is making on bringing forward legislative proposals to protect access to cash.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The government recognises that cash remains an important part of daily life for millions of people across the UK, and remains committed to legislating to protect access to cash.
From 1 July to 23 September last year, the government held the Access to Cash Consultation on proposals for new laws to make sure people only need to travel a reasonable distance to pay in or take out cash. The government’s proposals intend to support the continued use of cash in people’s daily lives and help to enable local businesses to continue accepting cash by ensuring they can access deposit facilities.
The government received responses to the consultation from a broad range of respondents, including individuals, businesses, and charities. The government has carefully considered responses to the consultation and will set out next steps in due course.