Oral Answers to Questions

Debate between Justin Tomlinson and Bill Esterson

Tuesday 16th April 2024 Commons Chamber

[Justin Tomlinson]

I thank the hon. Member for her kind words. I enjoyed working with her on many occasions in my former roles. The Government have continued to work with the public and business to unlock additional investment. For example, through the connections action plan, we expect an additional 40 GW of accelerated collection dates to be released, which will particularly help in the area of solar. We are also looking at the £85 billion of investment we have unlocked since the autumn statement through the transmission acceleration action plan. Those are all vital components to hit our ambitious targets.

[Bill Esterson (Sefton Central) (Lab)]

4. What recent discussions she has had with businesses and investors on the Government’s net zero targets.

[Mohammad Yasin (Bedford) (Lab)]

12. What recent discussions she has had with businesses and investors on the Government’s net zero targets.

[The Minister for Energy Security and Net Zero (Justin Tomlinson)]

As a Department, our ministerial team meet regularly with industry: for example, through the hydrogen investor forum, the Offshore Wind Industry Council, the solar taskforce, the Green Jobs Delivery Group and the cross-cutting Net Zero Council, which is shortly celebrating its first anniversary.

[Bill Esterson]

Car makers warned what would happen before the Government delayed the end date for the sale of new petrol and diesel cars. Sure enough, sales of new electric cars are down by 19% in the latest figures from the Society of Motor Manufacturers and Traders. Switching to electric driving is cheaper over the lifetime of the vehicle. Why did the Government not listen to the warnings from business? Do they not want people to benefit from cheaper travel?

[Justin Tomlinson]

I proudly drive an electric vehicle myself, and I celebrated the fact that 48,388 electric vehicles were registered in March 2024 alone.

Oral Answers to Questions

Debate between Justin Tomlinson and Bill Esterson

Monday 25th January 2021 Commons Chamber

[Justin Tomlinson]

We have shown as a Government the support we are providing, including over £9 billion of extra welfare support. Those on legacy benefits will have benefited from the annual uprating. Depending on individual circumstances, if a claimant would be better on universal credit, they can look to transfer over.

[Bill Esterson [V]]

There are 2.2 million people who are having to shield. Many disabled people cannot work from home and do not qualify for furlough, and sick pay is only £95.85, which does not even come close to the definition of doing what it takes to look after people, which the Prime Minister tried to use on Thursday. May I push the Minister not to give the same tired answer about what he has done for other people but to answer the question that my hon. Friend the Member for Ellesmere Port and Neston (Justin Madders) has just asked? When are the Government going to give support to disabled people so that they can be protected and stay at home?

[Justin Tomlinson]

The level of statutory sick pay is just part of the safety net; people may also be eligible for new-style ESA or universal credit, and for those disabled people who are looking to work from home, we have extended the support that is available through Access to Work, allowing for people to have additional support for their needs or equipment. That is something that we will keep in place beyond covid.

Statutory Sick Pay and Protection for Workers

Debate between Justin Tomlinson and Bill Esterson

Wednesday 18th March 2020 Commons Chamber

[Justin Tomlinson]

I have worked very closely with the hon. Lady on a number of issues, and I know that she is held in huge respect across both sides of the House.

Prior to being an MP, I ran my own business, so I understand the concerns of self-employed people who have suddenly overnight seen dramatic changes to their cash flow and ability to trade as a business. I absolutely understand the worries that people will have, which is why we are allowing access to statutory sick pay or, depending on people’s personal circumstances, looking at whether they can turn to new-style ESA—the contributory benefit—which is probably the case for the self-employed, or the wider support offer through universal credit and the welfare net. People would need to look at their circumstances and talk to the jobcentres. We are all trying to do our best to provide as much certainty as possible, as quickly as possible, through the daily updates.

[Bill Esterson (Sefton Central) (Lab)]

The Minister will know that many people are really worried about the financial impact of self-isolation, whether they are sick or not. He has mentioned sick pay a few times and the alternatives of universal credit and ESA, but those sums simply will not pay the rent or the bills, or put food on the table. The Minister also mentioned the speed at which action is needed and how much faster his Department is having to react then normal. If it takes till next week to put in place legislation, many more people will have not taken action to protect themselves and everybody else. Action is needed now and people need the money now. Will he please respond on that point?

[Justin Tomlinson]

I absolutely understand the point that the hon. Member makes. These are extraordinary times, and collectively we are all trying to identify the right levels of support as quickly as possible. In pure cash terms, the fiscal support that we have already provided at this stage of the curve is almost the highest around the world, but this is not complete. As events progress, we have to do more and we can expect more announcements. I understand that in an ideal world we could announce everything straight away, but we have to make sure that it is right, we have to react as things come forward, and we have to communicate as quickly and clearly as possible. We do understand that.

Consumer Credit and Debt Management

Debate between Justin Tomlinson and Bill Esterson

Thursday 3rd February 2011 Commons Chamber

[Justin Tomlinson]

My hon. Friend is spot on, and all too often we find that consumers are simply not equipped to make informed decisions.

It is suggested that total cost caps are the solution, and I support the principle. Surely there is an unequivocal case for saying that for borrowing X amount, there should be an absolute limit on the sum to be paid back. We should protect consumers from the very worst.

The motion is 99% there, but the amendment expresses a slight hesitation. There is still a nervousness, because whatever we do will have consequences. When organisations such as Consumer Focus and MoneySavingExpert, which is run by Martin Lewis, say that we must be mindful of possible consequences, it is right and proper that we should take a measured and detailed look at the issue to ensure that the consequences are thought out. The evidence is inconclusive—

[Bill Esterson (Sefton Central) (Lab)]

I take the hon. Gentleman’s point about the consequences, but the evidence from Members on both sides of the House suggests the problem is with the difference between voluntary and mandatory regulation. Unless enforced, the regulation just will not happen.

[Justin Tomlinson]

That is why I support the principle, but—as the hon. Member for Walthamstow said—it is essential that we make things better, not worse. We should not rush in if we have not considered all the consequences. However, we need to act urgently and, crucially, with a desire to find a workable form of total cost caps. For those people who say that additional regulation would push people into the hands of the illegal loan sharks or that extra action will damage our case for protecting vulnerable consumers, I point out that we have just seen significant changes to the credit card industry that have not affected people’s access to credit cards. We should not fear that the market would collapse.

I urge the Minister to look into the sales techniques of doorstep lending. They include nudge-nudge techniques that encourage people to take on expensive, long-term debt. Such lenders concentrate on having relationship managers who go into the homes of the consumers. They argue that that helps them to assess whether the consumer can afford to borrow more money. The relationship manager has a cup of tea and a chat. They might ask, “Christmas is coming up, have you made plans for that?” The consumer says that her children want the latest expensive toy, and the representative offers to lend some money—at a high cost. The consumer is nudged into a long-term cycle of debt, and that is one of the most important areas to consider.

My flagship issue is financial education, which is included in the motion. I launched the all-party parliamentary group on financial education for young people on Monday, with my hon. Friend the Member for Chippenham (Duncan Hames) and the hon. Member for Walthamstow as vice chairs. Some 171 MPs have signed up and it is supported by the Personal Finance Education Group and Martin Lewis of MoneySavingExpert. I am grateful for that support, as it is unbelievably important that we have savvy consumers who understand that they can shop around and are equipped to make informed decisions.

There is an incredibly strong case for making the costs more transparent, and it is another reason why total cost caps are so important. All too often, people judge a debt on the APR. There are many issues with high APRs, but there are extra charges as well, which is why the crude cap on interest rates alone was previously rejected. There should be a cap on everything. That would also allow consumers to make good comparisons.

I know that some hon. Members will criticise organisations such as Wonga.com, but I have to give it some credit, because of all the organisations that have lobbied me, it is the only one that has said, “We will work with whatever changes are put in place.” That should mean clear, understandable and transparent costs—I would support that. However, we cannot just look at APR. Part of Martin Lewis’s financial training for me was the following good example: if someone takes out £3,000 on a credit card at the age of 19 on a typical APR of 17.9% and makes only the minimum payments, they will not clear that debt until they are 60 years old. Although the 17.9% does not look too bad, there are long-term implications, which again supports the principle of total cost capping, showing all the costs, including what it will really cost over the lifetime of the debt.

I fully support any measures to give greater access to credit unions. Being conscious of the time, I will simply bow to my hon. Friend the Member for East Hampshire (Damian Hinds) for championing this subject in Parliament. I urge the Minister to take that on board, as well as the need to make available greater access to social funds, in particular by allowing greater flexibility in emergencies. All too often, the need to acquire debt is a result either of consumers wanting something now rather than later or of sudden changes in circumstances. We need to be in a position to help out those in the latter situation.

Finally, I want to address the principle of the savings culture in this country. The hon. Member for Walthamstow talked about how we have the lowest savings rates and the highest levels of debt. That is this nation—we have an insatiable appetite to buy now and pay later. Over the long term we need to change that, because where possible people need to have a savings buffer for changes in circumstances. So I urge the Minister to consider all the different options proposed. We have cross-party support for the principle. I am sorry that there is an amendment to the motion, because it will take up time in the Division Lobbies, but we are 99.9% there. The question is how we do this. However, we need to consider all the consequences, and I have every faith that we will be able to make a difference for the people who need our help the most.