Asked by: Lizzi Collinge (Labour - Morecambe and Lunesdale)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential merits of extending regulations preventing existing customers from being charged higher premiums than new customers to include homecare insurance.
Answered by Emma Reynolds - Economic Secretary (HM Treasury)
The Government is committed to ensuring that insurers treat all customers fairly and insurance companies are required to do so under the Financial Conduct Authority’s (FCA) rules. The FCA is the independent body responsible for regulating and supervising the financial services industry. The FCA requires firms to ensure their products offer fair value. The FCA monitors firms to make sure they provide products that are fair value, and, where necessary, it will take action.
In January 2022, the FCA introduced new rules to prevent insurers from charging existing customers more than new customers for equivalent home and motor insurance policies. The FCA intends to publish an impact evaluation of the effect of these rules later this year.
The FCA continues to monitor pricing practices across the insurance sector and may consider further action where there is evidence of consumer harm.
Asked by: Lizzi Collinge (Labour - Morecambe and Lunesdale)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what lessons her Department has learnt from the covid-19 pandemic support schemes to ensure that adequate protection is provided to for (a) directors of small limited companies and (b) shielding households.
Answered by Darren Jones - Chief Secretary to the Treasury
Decisions on eligibility for Covid-19 financial support were taken by the previous Government.
The previous Government decided to provide support through the Self-Employment Income Support Scheme (SEISS) based on two principles: a) targeting support at those who needed it most; and b) guarding against error, fraud and abuse, whilst reaching as many individuals as possible.
People may have been eligible for the other elements of the financial support provided by the Government, including the welfare system. This package included Restart Grants, the Recovery Loan scheme, business rates relief, and other business support schemes.
The previous Government evaluated the COVID-19 labour market support schemes. These were published in 2023 and can be found on Gov.uk. The Government will continue to learn lessons through formal evaluations and reports by independent bodies, such the National Audit Office, and through the work of the UK COVID-19 Public Inquiry.
Asked by: Lizzi Collinge (Labour - Morecambe and Lunesdale)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the adequacy of the Approved Mileage Allowance Payment rate for sole traders; and whether she plans to review the rate.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Approved Mileage Allowance Payments (AMAPs) are used by employers to reimburse an employee’s expenses for business mileage in their private vehicle. These rates are also used by self-employed drivers to claim tax relief on business mileage (simplified motoring expenses).
In considering potential changes to the AMAP/simplified motoring expenses rates, the Government would need to balance support for individuals with the responsible management of public finances which fund our essential public services.
Asked by: Lizzi Collinge (Labour - Morecambe and Lunesdale)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many vehicles manufactured prior to the 2020 changes to Vehicle Excise Duty (VED) rates are subject to the increased diesel vehicle supplement due to their first registration date falling after those changes; whether her Department plans to review the legislation to ensure vehicles of the same year, make and model are subject to the same VED rate regardless of registration date; and whether her Department has made an assessment of the potential impact of this tax difference on the Ministry of Defence fleet and related costs.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Since 1 April 2020, the Worldwide Harmonised Light Vehicle Test Procedures (WLTP) have been used by the DVLA to measure the CO2 emissions of a car, rather than the CO2 emissions stated by an EU Certificate of Conformity or a UK approval certificate.
Where a car has not been tested to WLTP standards, the car must be taxed according to its engine size and in the Private Light Goods taxation class. This means its tax rate is based on its engine size, rather than CO2 emissions.
While the Ministry of Defence (MOD) keeps its own register of the vehicles it owns, the MOD is not a licensing authority, meaning the first registration of an MOD vehicle will be its point of first registration with the DVLA.
The Government keeps the tax system under review.