(5 months, 1 week ago)
Commons ChamberI recognise that this has been a very challenging time for Safe Hands customers. The hon. Member will be aware that the FCA, as the independent regulator of the funeral plan sector, is responsible for dealing with specific cases. However, the Treasury and the FCA have worked closely throughout the process of bringing the sector into regulation, as well as during the implementation of the new regulatory framework.
My experience of the FCA and the Safe Hands funeral plan fiasco is that it took six months to reply to my freedom of information request and pleaded commercial confidentiality to key questions, and that, despite being warned, the Treasury failed to support consumers moving from an unregulated sector into regulation. It appears to me that the Treasury missed opportunities to support consumers and is still shuffling its feet. At least 47,000 people are out of pocket to the tune of £60 million. They were trying to protect their loved ones from expensive funerals at the worst of times. Will the Minister consider an independent review of this matter? A constructive response is needed to ensure that Safe Hands victims can have confidence in a system that for too long has let them down.
I share the hon. Member’s anger at how Safe Hands customers have been treated. The business is under criminal investigation by the Serious Fraud Office and its administrators are bringing legal action against the former owner of the Safe Hands business. In the Treasury, we do not believe it is right to use taxpayer money to compensate consumers who lose out due to the conduct of unregulated firms; Safe Hands was not within the regulatory perimeter at that time. However, we have worked with the sector so that the two largest providers of funeral plans have agreed to provide significantly discounted replacement plans for the customers who have found themselves so badly treated.
(8 months, 4 weeks ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
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Thank you for the opportunity to respond to the debate, Sir Robert. It is a pleasure to serve under your chairmanship. I thank the right hon. Member for Basingstoke (Dame Maria Miller) for providing leadership on this key issue, and I acknowledge the work of the right hon. Member for South Northamptonshire (Dame Andrea Leadsom) in helping develop the ICGS in the first instance.
This topic is important, and I touched on it recently in the Speaker’s Conference debate. Although it is by no means an issue for every MP—or indeed everyone who works in Parliament—there have been too many instances where MPs, or sometimes staff members, have abused their power. The issue goes to the heart of our culture and working conditions in Parliament. The past few years have been damaging to the reputation of the Houses of Parliament, with serious allegations against, and sometimes convictions of, Members. It is essential that we get our own house in order and ensure that we have an inclusive and respectful working environment.
We welcome the role of the Independent Complaints and Grievance Scheme in dealing with instances of poor behaviour by Members. The ICGS is a hard-won system, its origins rooted in too many reviews of Parliament’s failures. We fully support this new way of working. Investigations of misconduct are independent and impartial, with victims’ anonymity respected—that is important.
The ICGS has proved an effective method for MPs’ staff to raise incidents of poor conduct. After concerns that the process can be lengthy, timescales for completing cases are coming down. The most recent report published by the ICGS, in October, said that the time taken to resolve complaints had fallen by 26 working days. It used to take up to a year to resolve cases, but they are now completed, on average, within six months. That is an important step in the right direction, but the time taken is still too long.
It is welcome that the ICGS has held roadshow events across the country. Constituency office staff and those working remotely should be aware of the advice and support open to them. I also welcome the new HR system proposed by the Members’ Services Team. Earlier intervention can prevent the escalation of problems in the long term. The MST, acting as a mediator where appropriate, could help to prevent incidents from escalating and to ensure that we have proper inductions, training and ongoing welfare checks, as others have said. Early intervention by the human resources team will reduce complaints to the ICGS. As covered in the Speaker’s Conference debate, it is essential that such important HR issues are introduced as soon as possible.
At the coming general election, there might be a high turnover of Members, and it would be good to see the measures ready to go at that point. Importantly, the implementation of a risk-based exclusion process is urgently needed. There are safeguarding issues if an MP who is arrested for a serious violent or sexual offence is allowed to continue attending their workplace and going on parliamentary visits. Labour has been working with Mr Speaker and the Leader of the House on the issue, and we want the exclusion process to be brought forward as quickly as possible.
I therefore have some questions for the Minister. Can the ICGS investigation process please be speeded up still further? Will the proposed action on exclusions be introduced before Christmas of this year? How will the ICGS work with the new Members’ Services Team? It is vital that we continue to make progress on this important issue. Parliament should be a safe and respectful workplace.
(11 months, 3 weeks ago)
Commons ChamberYes, I agree with my hon. Friend on this matter. It is one reason why we have beefed up the role of the financial regulators review commissioner, and we will also be requiring the regulators to publish regular operating metrics on their performance, to give consumers the trust they need.
Back in 2017, both the Treasury and the Financial Conduct Authority knew there were problems with the prepaid funeral plan market. Since then, my constituent Gary Godwin of Nantyglo lost over £6,000 to the collapse of a company called Safe Hands. Across the UK, thousands more have lost millions of pounds altogether. Will the Minister please meet me to discuss this scandal and Mr Godwin’s case?
Yes, I will be very happy to meet the hon. Gentleman. What happened with Safe Hands is a scandal, and that is why we have enlarged the regulatory perimeter to bring those who seek to sell funeral plans within the regulatory conduct.
(1 year, 1 month ago)
Commons ChamberThe Minister says that he wants the “best possible outcomes” for pension savers. The pensions dashboard, which is designed to help pensioners understand their pension’s performance, was promised by Chancellor George Osborne, but it is still delayed. When will the pensions dashboard be delivered to support UK pensioners?
My hon. Friend the Minister for pensions is proceeding at pace to deliver that important element in people’s ability to access the most information. It is just one component. We want people to have good pension choices and to understand the ways that investments are being made. The hon. Gentleman will understand, because we have engaged in the past about pensioners not necessarily having had the best information available to them in a regulated way, that it is better to be right in this case than to be fast.
(1 year, 2 months ago)
Commons ChamberI rise in support of Lords amendment 27. First, I thank the Ministers in this House and the other place for this important concession. I also express gratitude to those Members from all parties in this House and the other place who supported my campaign on this matter. We are all glad that there will be a mechanism for greater parliamentary oversight of our financial services regulators. The specialist insight from statutory panels on the performance of regulators will be invaluable, particularly on the Financial Conduct Authority’s fulfilment of its all-important consumer protection objective.
To help take things further, I hope to meet the chair of the FCA consumer panel shortly. I will explain why the FCA’s handling of the British Steel pension scheme in 2017 was so very disappointing. It is simple: the FCA faced the City of London, not the homes of vulnerable steelworkers in Ebbw Vale, Port Talbot and Scunthorpe. As parliamentarians, we found it hard to influence the dilatory regulator in support of our steelworker constituents, who deserved much better protection against the financial sharks.
Having said that, amendment 27—in addition to the FCA’s new consumer duty—makes me a little bit hopeful that we will encourage the FCA to become more outward looking and capable of adapting to the changing needs of Britain’s consumers. I am more optimistic that there will be a different way of working; that oversight and scrutiny will be embraced; and that scandals such as the British Steel pension scheme will not happen so easily again.
However, our fight for the proper protection of consumers does not stop there. I declare an interest: the Labour Treasury spokesperson in the other place is my wife, Baroness Chapman. I will speak in support of Lords amendment 10, which she moved in the other place. Financial inclusion is crucial to the regulation of financial services, so I urge the Government to reconsider their opposition to that amendment. The design, marketing and administration of financial products and the quality of financial advice have a direct impact on whether vulnerable groups are properly included in our financial system.
Just last week, I met steelworkers who, once bitten, were twice shy about what to do next with their pension pots. They are smart and highly skilled, yet understandably they do not have the financial knowledge nor the right impartial support on their investment needs. Across our country, there is still the danger of millions like them being at risk of exploitation by bad actors in the financial sector. Financial inclusion should therefore be at the forefront of our regulatory framework. After all, consumers are our financial services sector. They need to have confidence in a regulatory framework that prioritises them and faith in our financial sector.
I rise to support the Bill, and primarily to speak about access to cash and, therefore, my support for Lords amendments 72 to 77.
I have spoken many times in this place about banking provisions. I brought in a ten-minute rule Bill, the Banking Services (Post Offices) Bill, which the Government did not in the end take up. I have said time and again in this place that the UK is not ready to go cashless. That is why I am particularly pleased with the provisions in this Bill. The reasons for that are manifold. The elderly, the vulnerable and particularly those living in rural locations such as mine of North Norfolk simply rely on cash, and I think I can speak for many Members in the Chamber on that. If Members do not believe me, they have only to look at what the access to cash group said in its research, which is that 5 million adults would struggle without access to cash, and those are often the people on the lowest incomes and the tightest budgets.
(1 year, 2 months ago)
Commons ChamberWe set out the terms of that settlement in 2010 and there is nothing to update the House on today.
For over five years, I have campaigned on behalf of steelworkers who were part of the British Steel pension scheme. Many were ripped off by sharks posing as financial advisers. While a redress scheme is now in place, legal advisers for steelworkers report claim processing delays of six months at the Financial Conduct Authority, 12 months at the Financial Services Compensation Scheme and two years at the Financial Ombudsman Service, which suggests that all is not right. Delays to cases can have a big impact on possible payouts, so will the Minister please look into the performance of those organisations? Steelworkers and other financial consumers deserve much better than this.
Yes, I will. I have had conversations with the hon. Member about that, and I will take up the case of any unwarranted delays.
(1 year, 2 months ago)
Commons ChamberI thank my hon. Friend the Member for wonderful Old Bexley and Sidcup (Mr French) for that. I recall that last October Opposition Members were never shy of citing the Institute for Fiscal Studies, but they do so much less today, because the IFS has said that Labour’s £28 billion borrowing plan would cause both interest rates and inflation to rise. I do not see how that would help the nation’s mortgage holders.
The value of mortgage arrears has risen by a troubling 10% in the past quarter, so what is the Minister’s assessment of the likely level of arrears in the next quarter?
I talked about the focus on the level of mortgage arrears, which are at an historic level. My Treasury colleagues and I are tracking them extremely closely. We have talked to all the lenders and the Chancellor has brought them all in to ensure that they have responsible policies in place so that repossessions are a last resort.
(1 year, 3 months ago)
Commons ChamberSome £7.9 billion was wasted on useless and overpriced personal protective equipment; meanwhile, opportunists who saw the Tories coming are now profiteering on the back of the public purse. Does the Minister regret that this money was not spent wisely? Nearly £8 billion could buy us 20 new hospitals.
Our priority was clear throughout the covid crisis, and that was to get PPE to the frontline as quickly as possible. Due diligence was carried out on all companies that were referred to the Department. Despite all those steps being taken, some instances of fraud did occur with unscrupulous suppliers taking advantage of the situation. This Government take that fraud seriously, and the Department of Health and Social Care is exploring every available option to bring those who commit fraud to account. We have also made a number of other interventions, including investment in the taxpayer protection taskforce to normalise higher compliance activity in HMRC, alongside other measures to deal with fraud elsewhere in some of the emergency schemes that we set up to help this economy and this country get through covid.
(1 year, 6 months ago)
General CommitteesI know that the answer will come to me quickly, because we in the Treasury pride ourselves on reacting and responding quickly to the circumstances. The hon. Member for Blaenau Gwent was also trying to catch my eye, so now may be an appropriate time for him to intervene, then I can try to answer both questions at the same time.
I thank the Minister for giving way. I am just going through the explanatory memorandum to the draft Tax Credits, Child Benefit and Guardian’s Allowance Up-rating Regulations 2023. The consultation outcome on page 3, paragraph 10 says that there was no consultation because of the Treasury reviewing the rates. Families in these circumstances faced particularly high energy costs last year, so would it not be valuable, for fairness, for the Treasury or the Department for Work and Pensions to look at the other measures tackling high energy costs and their impact on families to ensure a fairer outcome for families from this important measure?
I know that the hon. Gentleman welcomes the uprating by 10.1% of that particular allowance. It is a vital allowance for those who play such an important role in our society. On the impact of high energy prices, we are not just relying on the uprating of this particular type of tax credit; we are bringing in a whole range of measures, primarily through the Department for Work and Pensions. For example, we are giving a £900 one-off payment to people who are on means-tested benefits, and additional money for the elderly and for those on disability benefits. This uprating is an annual event and, precisely because the CPI was as high as it was in September, we are uprating —rightly, in my view—all these sensitive benefits and allowances to help those who are the most vulnerable in our society.
I accept that there have been extra measures on families’ energy costs, and I welcome the increase by CPI, or 10%. My point is that there are other inflationary measures, including the higher energy costs, that this group in particular faces. Could those measures be looked at as part of the consultation, either now or in the future, given the extraordinarily high energy costs for such families?
I thank the hon. Gentleman for raising that interesting point. We have settled on CPI as the preferable rate of inflation, because it ensures the fairest outcome for those receiving help from the state and for the taxpayers who enable benefits and other public services to be funded properly. Indeed, we changed to CPI from the retail price index some years ago. The Government keep other measures of inflation under review. We think CPI is the most appropriate index at the moment, but we will keep that under review.
I hope that the hon. Gentleman welcomes the recent observations of the Office for Budget Responsibility, which thinks that the energy price guarantee has had a powerful buffering impact on the rate of inflation in recent months—as much as 2% or 2.5%. As well as helping our constituents with their bills in the immediate term, we hope that the guarantee will have a longer-term impact on getting inflation down. The impact of inflation on our economy is stark, which is why the Prime Minister is rightly focusing on it and, indeed, why it was the first promise in his new year speech. Inflation hurts everyone, but it hurts the poorest in society the most.
Before I sit down, I am keen to answer the question from the hon. Member for Erith and Thamesmead. I am told that income disregards are conventionally frozen, but I want to get some more information to her, so I undertake to write to her on that important point.
Question put and agreed to.
DRAFT TAX CREDITS, CHILD BENEFIT AND GUARDIAN’S ALLOWANCE UP-RATING REGULATIONS 2023
Resolved,
That the Committee has considered the draft Tax Credits, Child Benefit and Guardian’s Allowance Up-rating Regulations 2023.—(Victoria Atkins.)
(1 year, 7 months ago)
Commons ChamberMy right hon. Friend makes a very good point about how broad the impact is of rising energy bills. She used the phrase “cliff edge”. That is precisely why we have continued with a universal scheme. Yes, I am happy to confirm that there will be support for every single business, charity and institute in our public sector, but there will be additional support if they are in the energy and trade-intensive sector. The reason for that is the exposure to internationally competitive pressures and how much harder it is for them to pass on those prices. We recognise the energy challenges for small and medium-sized enterprises in every single sector. We are doing what we can, but balancing that against the need for fiscal prudence.
On possibly tweaking the scheme, last week I visited a housing scheme for older people in Blaenau, where constituents with private pensions were complaining of increased energy costs of 400%, or £50 a week, just for heating the common social areas. The housing association complained that none of the Government’s energy schemes is of help to the organisation, so it had to pass on the costs. Will the Minister please meet me to hear those important concerns?
The hon. Gentleman raises a very important point. I would have to know the exact details, but, yes, I am more than happy to meet him. He will be aware that the care home could benefit from EBRS, which will become the eligible discount scheme after March, but I stress that there are 900,000 in England, Scotland and Wales without a direct relationship with an energy supplier, such as care home and park home residents. This month they will be able to apply online for £400 of non-repayable help with their fuel bills.