Savings (Government Contributions) Bill

Debate between Lord Sharkey and Baroness Neville-Rolfe

2nd reading (Hansard): House of Lords & 3rd reading (Hansard): House of Lords & Committee: 1st sitting (Hansard): House of Lords & Report stage (Hansard): House of Lords
Thursday 12th January 2017 Lords Chamber

[Baroness Neville-Rolfe]

I take note of the noble Baroness’s point. There is a balance here. I have set out why we have got to where we have got to. Indeed, I look forward to debates on the statutory instruments for this Bill in the fullness of time. I am sure nobody has ever said that before.

The noble Lord, Lord Sharkey, asked about other providers. He referenced a discussion in the other place about the involvement of credit unions. We have appointed NS&I as the scheme provider to remove significant administrative and compliance costs associated with allowing different providers to offer accounts. An option where we fund NS&I to provide accounts while allowing other providers to offer accounts on a voluntary basis would not provide value for money, but—this answers his question—we shall not rule out the option for a range of providers to offer accounts as long as they deliver national coverage. We felt that the credit union did not do that. That is why the Bill has been drafted to accommodate different models of account provision, although other models are not in the current plan.

[Lord Sharkey]

I am grateful to the noble Baroness for that answer and I understand the position the Government have taken. Are there ongoing conversations with credit unions and other commercial suppliers of both these schemes?

[Baroness Neville-Rolfe]

I believe that the Economic Secretary to the Treasury has had some discussions of which the noble Lord may be aware, but I should not want to suggest that we are about to change the situation. I have made it clear that the provision is written in an appropriately broad fashion. I can also confirm that the Government are not restricting the number of lifetime ISA providers. Provision will be open to any provider with the appropriate HMRC and FCA approvals.

When it comes down to it, this money Bill is all about supporting people who are trying to save, whether through increased support to those on low incomes through Help to Save or through the increased flexibility and choice for younger savers offered by the lifetime ISA. This is a Bill that supports people trying to do the right thing—those who want to save and to be financially prepared for the future. I am therefore pleased to commend this Bill and to ask the House to give it a Second Reading.

Cold Calls

Debate between Lord Sharkey and Baroness Neville-Rolfe

Thursday 29th October 2015 Lords Chamber

[Lord Sharkey]

To ask Her Majesty’s Government what action is being taken to reduce the number of cold calls made to households.

[The Parliamentary Under-Secretary of State, Department for Business, Innovation and Skills and Department for Culture, Media and Sport (Baroness Neville-Rolfe) (Con)]

My Lords, we have already increased the level of monetary penalties that regulators can issue and have made it easier for the Information Commissioner’s Office to take enforcement action. We are currently running a £1.5 million competition fund to encourage the development of more innovative, safe and cost-effective technology to block unwanted calls, and we will consult shortly on calling line identification, a subject close to my heart.

[Lord Sharkey (LD)]

Many cold calls are from companies that sell leads to debt management companies. The FCA said in June that debt management firms are still failing Britain’s most vulnerable consumers, and last November the FCA wrote to the Minister saying that the rules on cold calling in consumer credit needed review. It is a year on, and there is no review. Every day of delay means that more and more people are exposed to faulty debt management advice. But the real puzzle is this: cold calling for mortgages is banned, so why is it not banned for debt management?

[Baroness Neville-Rolfe]

The noble Lord makes a good point and the FCA has committed to undertake a proper review of its rules on unsolicited marketing calls, emails and text messages from consumer credit firms. As he says, that will include debt management firms and so-called lead generators, which are basically data brokers. It will take place early next year. It is delayed but we have already suggested that the FCA might meet the noble Lord to discuss his concerns and ensure that they are fast-tracked.