Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions his Department has had with the insurance industry on fulfilling their responsibilities to policy-holders who have paid enhanced premiums for policies that include enforced closure as a result of infectious disease.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government is in continual dialogue with the insurance sector about its contribution to handling this unprecedented situation. The Government is also working closely with the Financial Conduct Authority (FCA) to ensure that the rules are being upheld during this crisis.
For those businesses which have an appropriate policy that covers government ordered closure and unspecified notifiable diseases, the Government’s social distancing instructions are sufficient to allow businesses to make a claim against their insurance, provided the other terms and conditions in their policy are met.
The FCA’s rules require insurers to handle claims fairly and promptly; provide reasonable guidance to help a policyholder make a claim, and appropriate information on its progress; not reject a claim unreasonably; and settle claims promptly once settlement terms are agreed. In addition, the FCA has said that, in light of COVID-19, insurers must consider very carefully the needs of their customers and show flexibility in their treatment of them.
Furthermore, on 15 April, FCA sent a letter to the insurance industry, setting out the FCA's expectation of firms regarding their handling of business interruption insurance claims, urging insurers to settle claims quickly in cases where there was a clear obligation to pay the claim in full or in part.
In addition, on 1 May, the FCA published a statement setting out their intention to seek legal clarity on the handling of business interruption insurance claims, in order to resolve any doubt for businesses facing uncertainty on their claims. In their statement the FCA also noted that insurers should look at how they can help consumers who are experiencing financial distress as a result of COVID-19.
However, most businesses have not purchased insurance that covers losses from COVID-19. Insurance policies differ significantly, so businesses are encouraged to check the terms and conditions of their specific policy and contact their providers.
The Government recognises that businesses who do not have appropriate insurance cover will require support from elsewhere. As such, businesses should explore the full package of support set out by the Chancellor, which includes measures such as business rates holidays, the Coronavirus Business Interruption Loan Scheme, and wage support.
Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether employers are entitled to claim 80 per cent of an employee's holiday pay when calculating their wage under the Coronavirus Job Retention Scheme; and if he will update the guidance on the scheme to provide clarification in this area.
Answered by Jesse Norman
Employers can continue to claim the 80% grant from the Government to cover most of the cost of holiday pay, although employers are required to pay additional amounts over the grant so that employees receive their full holiday pay, in accordance with the Working Time Regulations. Employers have the flexibility to restrict when leave can be taken if there is a business need.
BEIS have published detailed guidance on holiday entitlement during furlough, which is available on GOV.UK.
Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will provide financial support to English Language Teaching centres in the form of (a) a business rates holiday or (b) grants.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The government is making sure that people and businesses have access to the support they need as quickly as possible. The English language teaching sector can apply for additional support through the Coronavirus Job Retention Scheme and the Coronavirus Business Interruption Loan Scheme where they meet the criteria for these schemes. The government has provided enhanced support to other sectors under exceptional circumstances through business rates relief and grants given the direct and acute impacts of the COVID-19 pandemic on those sectors.Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what support from the public purse is available to people who have become self-employed in the last 12 months who are ineligible for the Self-employed Income Support Scheme.
Answered by Jesse Norman
The Government has designed measures that can be implemented quickly and effectively, and it continues to work with stakeholders to make sure funding reaches those who need it most. Anyone ineligible for the Self-Employment Income Support Scheme who requires support should have access to other measures appropriate to their individual circumstances. These include the relaxation of the earnings rules in Universal Credit and the raising of the Local Housing Allowance rate.Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to support people who have recently become self-employed and are therefore ineligible for the Self-Employed Income Support Scheme.
Answered by Jesse Norman
It has not been possible to include those who began trading after the 2018-19 tax year in the Self-Employment Income Support Scheme. This was a very difficult decision and it was taken for practical reasons. The Government recognises that those who started trading more recently will not have submitted a tax return for the 2018-19 tax year, and it considered alternative approaches. HMRC would not be able to distinguish genuine self-employed individuals who started trading in 2019-20 from fake applications by fraudulent operators and organised criminal gangs seeking to exploit the SEISS.
Those who entered self-employment after April 2019 may still be eligible for other support. For example, the self-employed can benefit from the Government’s relaxation of the earnings rules (known as the Minimum Income Floor) in Universal Credit. The SEISS supplements the significant support already announced for UK businesses, including the Bounce Back Loan Scheme for small businesses, the Coronavirus Business Interruption Loan Scheme, and the deferral of tax payments. More information about the full range of business support measures is available at www.gov.uk/government/collections/financial-support-for-businesses-during-coronavirus-covid-19.
Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what support is available for small charities that are not eligible for emergency funding due to covid-19.
Answered by Kemi Badenoch - President of the Board of Trade
Many charities and social enterprises will benefit from the existing measures announced to support employers and businesses. Under these measures, like other businesses, charities can defer their VAT bills and pay no business rates for their shops next year. Charities are eligible for the Job Retention Scheme, the Coronavirus Business Interruptions Loan Scheme, the Coronavirus Large Business Interruption Loan Scheme, and the Bounce Back Loans Scheme. Registered charities are now exempt from the requirement on these loan schemes that 50 per cent of the applicant's income must be derived from its Trading Activity.
Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the level of borrowing was that the UK undertook from the European Investment Bank in (a) 2016, (b) 2017, (c) 2018 and (d) 2019.
Answered by Jesse Norman
The European Investment Bank publishes details of all projects on their website, which can be filtered by country and year. Details can be accessed via the following link: http://www.eib.org/projects/loan/list/?region=1&country=GB.
Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate his Department has made of the level of borrowing that the UK will be able to undertake from the European Investment Bank after the transition period.
Answered by Jesse Norman
The UK is no longer a member of the European Investment Bank (EIB) as membership is only available to EU member states. This means that the UK is not eligible for new financial operations from the EIB that are reserved for Member States. The UK is exploring options for a future relationship with the EIB as a third country.
The Government is committed to ensuring that businesses and infrastructure projects continue to have access to the finance they need. The UK has a range of existing tools to support investment, including the UK Guarantees Scheme. In March 2019, the Government also launched the Infrastructure Finance Review, to examine how it can best support infrastructure investment in the future.