Draft Package Travel and Linked Travel Arrangements (Amendment) Regulations 2026

Debate between Gareth Davies and Kate Dearden

Wednesday 15th April 2026 General Committees

[The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)]

Thank you for chairing, Mr Twigg, and I apologise for arriving late—I was confused about whether there was another Division in the Chamber. I thank the Government Whip for stepping in and the shadow Minister, the hon. Member for Grantham and Bourne, for his remarks.

The regulations build on legislation from the previous Government, and we have worked really closely with the sector, which is an important driver of growth in the UK. Great holidays bring so much joy to consumers all over the country, and our reforms are all about strengthening the package—which the hon. Gentleman touched on—for the travel framework, ensuring that consumers continue to benefit from strong protections, while clarifying those obligations to ease the burdens on business, supporting the sector and supporting a healthy and thriving economy.

The shadow Minister asked a couple of questions that I will respond to, first on the cost and the impact on businesses. The policy will deliver a net benefit to business of £19 million over 10 years, with £98 million in costs outweighed by £117 million in savings. The analysis considered a range of sources, including feedback from the consultation.

The best estimate we can point to from published analysis is from the 2023 impact assessment of the Package Travel and Linked Travel Arrangements Regulations 2018, as the hon. Gentleman might know. That analysis estimates that 13,979 UK businesses sell packages. I hope that provides him with clarity on the costs.

[Gareth Davies]

Can the Minister clarify whether she has met any businesses since taking office in this specific industry, and not just relied on the 2023 piece of work?

[Kate Dearden]

I was getting to those points—I thank the hon. Gentleman for the nudge.

[Gareth Davies]

Apologies.

[Kate Dearden]

We have expressed our intention for the regulations to come into force on 6 April 2027. These regulations are commencing next year to give businesses almost a year to implement the changes, and they have been aware of these changes since the Government response in December.

We have been working closely with industry to develop guidance and will continue to do so in the coming months. Officials have already conducted engagement and consulted on the regulation at pace. It is really important for these changes that we work closely with the industry and that it welcomes them. We want to make sure we work closely with the industry on that guidance.

The shadow Minister also asked about the 14-day refund period for businesses. Travel organisers are required to refund consumers within 14 days of cancellation, but sometimes that will be because of a failure from a third party. Introducing a 14-day refund period for businesses from those third parties will create more certainty for travel organisers, helping them to manage cash flow and recover costs. That covers most of his questions, but I am happy to answer any more if he has any. Otherwise, I commend the regulations to the Committee.

Question put and agreed to.

Draft Digital Markets, Competition and Consumers Act 2024 (Alternative Dispute Resolution) (Conferral of Functions) Regulations 2026 Draft Digital Markets, Competition and Consumers Act 2024 (Alternative Dispute Resolution) (Consequential Amendments) Regulations 2026

Debate between Gareth Davies and Kate Dearden

Wednesday 25th February 2026 General Committees

[Kate Dearden]

I thank the shadow Minister for his comments and his support for the Act and the regulations we are considering. The regulations place the CTSI on a statutory footing. I alluded in my introductory remarks to the role of the Secretary of State and the accreditation determinations, monitoring, enforcement and information sharing under the Act, as well as the mandatory and accreditation requirements.

In terms of exempt ADR providers, to avoid duplicated regulatory provision, the Act exempts ADR provision under several ombudsmen and equivalent schemes, which are already regulated under other legislation. Those are either statutory bodies performing statutory functions or redress schemes regulated by other bodies under other legislation. If a sector already has its own dispute resolution system, these new ADR rules will not apply and that avoids doubling up regulations and ensures that businesses follow only one set of rules, with no confusion about who is responsible.

There are also some statutory bodies that, to an extent, carry out ADR and it is not considered appropriate to regulate them as their remit does not cover consumer contracts as defined in chapter 4 of part 4 of the 2024 Act.

I am happy to follow up the hon. Member’s point about the specifics on the statistics afterwards if he requires any further information. On the effect of schedule 25 listing exempt ADR providers, that is quite clear, but again, if he would like further information on how we are avoiding duplication, I am happy to provide it as there is a power to add further exemptions in future, which might be used where it is more appropriate to regulate ADR elsewhere.

The important point about the legislation is that it will ensure that ADR is much easier for consumers and businesses. That is really important to reflect on. What ADR can provide in terms of support and streamlining for businesses and consumers is significant, and will offer a cheaper and faster alternative for consumers and businesses seeking to resolve disputes, compared with making a claim to the courts. This framework gives the flexibility to update those standards over time. That is important and provides a foundation for considering further reforms if required.

[Gareth Davies]

I totally understand that the Minister might not have the information to hand right now, so will she commit to writing to me?

[Kate Dearden]

Yes, I am happy to provide that follow-up information.

Question put and agreed to.

DRAFT DIGITAL MARKETS, COMPETITION AND CONSUMERS ACT 2024 (ALTERNATIVE DISPUTE RESOLUTION) (CONSEQUENTIAL AMENDMENTS) REGULATIONS 2026

Resolved,

That the Committee has considered the draft Digital Markets, Competition and Consumers Act 2024 (Alternative Dispute Resolution) (Consequential Amendments) Regulations 2026—(Kate Dearden.)