Asked by: Owen Thompson (Scottish National Party - Midlothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to funeral plans coming under the the Financial Services Compensation Scheme as of 29 July 2022, whether previous Safe Hands Funeral Plans policy holders will be retrospectively awarded compensation equivalent to what they would be due under the Financial Services Compensation Scheme.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
In January 2021, the government legislated to bring all pre-paid funeral plan providers and intermediaries within the regulatory remit of the Financial Conduct Authority (FCA) from 29 July 2022. This will ensure that, for the first time, consumers are protected by compulsory and robust regulation.
Safe Hands Plans went into administration in March 2022. The government understands that this will be concerning for customers of Safe Hands and continues to monitor the implementation of regulation in this sector closely.
Dignity’s recent commitment to provide ongoing support to Safe Hands’ customers until November 2022 is welcome. This will ensure that any planholders who pass away during this time will receive a funeral without any additional charge.
Prior to the firm going into administration, Safe Hands Plans was not an authorised financial services firm. The Financial Services Compensation Scheme (FSCS) is the UK’s compensation scheme of last resort and pays compensation to consumers in respect of claims made in connection with regulated activities when authorised financial services firms fail. Extending the protection of the FSCS – which is funded by a levy on financial services firms – to unregulated firms would send an inappropriate and unhelpful message.
When the pre-paid funeral plan sector comes into regulation on 29 July, FSCS protection will apply for customers of firms that have obtained FCA authorisation, customers whose plans are transferred to such firms, and customers who buy funeral plans from such firms in the future.
Asked by: Owen Thompson (Scottish National Party - Midlothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of reviewing the levels of Approved Mileage Allowance Payments at more regular intervals in light of recent increases to fuel prices.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The Government sets the Approved Mileage Allowance Payments (AMAPs) rates to minimise administrative burdens. AMAPs aim to reflect running costs including fuel, servicing and depreciation. Depreciation is estimated to constitute the most significant proportion of the AMAPs. Fuel costs only contribute to a fraction of AMAP rates and not the total rate.
Employers are not required to use the AMAPs. Instead, they can agree to reimburse the actual cost incurred, where individuals can provide evidence of the expenditure, without an Income Tax or National Insurance charge arising.
Alternatively, they can choose to pay a different mileage rate that is higher or lower than AMAPs. If an employee is paid less than the approved amount, they are allowed to claim Mileage Allowance Relief (MAR) from HMRC. However, if the payment exceeds the amount due under AMAPs, and this results in a profit for the individual, they will be liable to pay Income Tax and National Insurance contributions on the difference.
As with all taxes and allowances, the Government keeps AMAP rates under review and any changes are considered by the Chancellor.
Asked by: Owen Thompson (Scottish National Party - Midlothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the impact of the collapse of Safe Hands Funeral Plans on increases on the cost of living.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
In January 2021, the government legislated to bring all pre-paid funeral plan providers and intermediaries within the regulatory remit of the Financial Conduct Authority (FCA) from 29 July 2022. When FCA regulation takes effect, funeral plan providers will need to be authorised by the FCA in order to enter into or carry out funeral plan contracts.
Safe Hands Plans has recently gone into administration. The government understands that this development will be concerning for customers of Safe Hands and continues to monitor the implementation of regulation in this sector closely.
I was very pleased to see Dignity’s recent commitment to provide ongoing support to Safe Hands’ customers for the next six months. This will ensure that any planholders who pass away during this time will receive a funeral without any additional charge.
While the FCA does not yet regulate funeral plan providers, it is supporting the administrators and the wider industry as they look to find a longer-term solution for Safe Hands’ customers.
It is unfortunate but unavoidable that bringing a previously unregulated sector into regulation – whatever form that may take – creates a possibility that some providers are not able to meet the threshold for authorisation. However, a well-regulated market should promote effective competition and drive better outcomes for consumers in the long-term.
Where a provider is unable to obtain FCA authorisation because of underlying issues, it is important to understand that this is not an issue created by bringing the sector into regulation. Rather, bringing the sector into regulation exposes these unsustainable business models and prevents these problems from getting worse.
The government understands that the rising cost of living is making life harder for people. These are global challenges: however, as set out in the Spring Statement, the government is providing support worth over £22 billion in 2022-23 to help families with these pressures.
Asked by: Owen Thompson (Scottish National Party - Midlothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will introduce a package of protection for previous policy holders with Safe Hands Funeral Plans.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
In January 2021, the government legislated to bring all pre-paid funeral plan providers and intermediaries within the regulatory remit of the Financial Conduct Authority (FCA) from 29 July 2022. When FCA regulation takes effect, funeral plan providers will need to be authorised by the FCA in order to enter into or carry out funeral plan contracts.
Safe Hands Plans has recently gone into administration. The government understands that this development will be concerning for customers of Safe Hands and continues to monitor the implementation of regulation in this sector closely.
I was very pleased to see Dignity’s recent commitment to provide ongoing support to Safe Hands’ customers for the next six months. This will ensure that any planholders who pass away during this time will receive a funeral without any additional charge.
While the FCA does not yet regulate funeral plan providers, it is supporting the administrators and the wider industry as they look to find a longer-term solution for Safe Hands’ customers.
It is unfortunate but unavoidable that bringing a previously unregulated sector into regulation – whatever form that may take – creates a possibility that some providers are not able to meet the threshold for authorisation. However, a well-regulated market should promote effective competition and drive better outcomes for consumers in the long-term.
Where a provider is unable to obtain FCA authorisation because of underlying issues, it is important to understand that this is not an issue created by bringing the sector into regulation. Rather, bringing the sector into regulation exposes these unsustainable business models and prevents these problems from getting worse.
The government understands that the rising cost of living is making life harder for people. These are global challenges: however, as set out in the Spring Statement, the government is providing support worth over £22 billion in 2022-23 to help families with these pressures.
Asked by: Owen Thompson (Scottish National Party - Midlothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he had recent discussions with FRP Advisory on the collapse of Safe Hands Funeral Plans.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
In January 2021, the government legislated to bring all pre-paid funeral plan providers and intermediaries within the regulatory remit of the Financial Conduct Authority (FCA) from 29 July 2022. When FCA regulation takes effect, funeral plan providers will need to be authorised by the FCA in order to enter into or carry out funeral plan contracts.
Safe Hands Plans has recently gone into administration. The government understands that this development will be concerning for customers of Safe Hands and continues to monitor the implementation of regulation in this sector closely.
I was very pleased to see Dignity’s recent commitment to provide ongoing support to Safe Hands’ customers for the next six months. This will ensure that any planholders who pass away during this time will receive a funeral without any additional charge.
While the FCA does not yet regulate funeral plan providers, it is supporting the administrators and the wider industry as they look to find a longer-term solution for Safe Hands’ customers.
It is unfortunate but unavoidable that bringing a previously unregulated sector into regulation – whatever form that may take – creates a possibility that some providers are not able to meet the threshold for authorisation. However, a well-regulated market should promote effective competition and drive better outcomes for consumers in the long-term.
Where a provider is unable to obtain FCA authorisation because of underlying issues, it is important to understand that this is not an issue created by bringing the sector into regulation. Rather, bringing the sector into regulation exposes these unsustainable business models and prevents these problems from getting worse.
The government understands that the rising cost of living is making life harder for people. These are global challenges: however, as set out in the Spring Statement, the government is providing support worth over £22 billion in 2022-23 to help families with these pressures.
Asked by: Owen Thompson (Scottish National Party - Midlothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the average Alcohol By Volume is of each product produced by (a) small brewers and (b) small cider producers.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The Government will introduce a new Small Producer Relief, building on the success of Small Brewers Relief, for cidermakers and other producers of lower alcohol by volume (ABV) drinks, to encourage innovation and remove barriers to growth for small producers.
Small brewers and cidermakers produce at a range of ABVs. The strength of the products of small producers will vary according to their individual business model.
Small cidermakers producing 70 hectolitres or less in a 12-month consecutive period are exempted from the requirement to register with HMRC for duty purposes. The Government therefore holds no records on the numbers of these businesses.
Under the proposals published at Budget, brewers that also produce spirits will be required to attribute spirits production to their total production amount.
We will be publishing the Government’s response to the consultation on the alcohol duty review, including Small Producer’s Relief, later in the year.
Asked by: Owen Thompson (Scottish National Party - Midlothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the (a) number and (b) percentage of cider producers that qualify for the small cidermakers exemption.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The Government will introduce a new Small Producer Relief, building on the success of Small Brewers Relief, for cidermakers and other producers of lower alcohol by volume (ABV) drinks, to encourage innovation and remove barriers to growth for small producers.
Small brewers and cidermakers produce at a range of ABVs. The strength of the products of small producers will vary according to their individual business model.
Small cidermakers producing 70 hectolitres or less in a 12-month consecutive period are exempted from the requirement to register with HMRC for duty purposes. The Government therefore holds no records on the numbers of these businesses.
Under the proposals published at Budget, brewers that also produce spirits will be required to attribute spirits production to their total production amount.
We will be publishing the Government’s response to the consultation on the alcohol duty review, including Small Producer’s Relief, later in the year.
Asked by: Owen Thompson (Scottish National Party - Midlothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the impact of the new small producer relief on small brewers that also produce spirits above 8.5% ABV.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The Government will introduce a new Small Producer Relief, building on the success of Small Brewers Relief, for cidermakers and other producers of lower alcohol by volume (ABV) drinks, to encourage innovation and remove barriers to growth for small producers.
Small brewers and cidermakers produce at a range of ABVs. The strength of the products of small producers will vary according to their individual business model.
Small cidermakers producing 70 hectolitres or less in a 12-month consecutive period are exempted from the requirement to register with HMRC for duty purposes. The Government therefore holds no records on the numbers of these businesses.
Under the proposals published at Budget, brewers that also produce spirits will be required to attribute spirits production to their total production amount.
We will be publishing the Government’s response to the consultation on the alcohol duty review, including Small Producer’s Relief, later in the year.
Asked by: Owen Thompson (Scottish National Party - Midlothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many small producers that produce multiple alcoholic products will be effected by the introduction of small producer relief.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The Government intends to introduce a new Small Producers Relief to replace the existing Small Brewers Relief. The new relief will include beer, cider, wine and spirits-based drinks below 8.5% alcohol by volume (ABV). It aims to encourage innovation and remove barriers growth for small producers.
This change will benefit hundreds of small producers across the UK by giving them access to reduce rates for the first time, across a wider range of products.
Asked by: Owen Thompson (Scottish National Party - Midlothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the effectiveness of the obligations on employment agencies and umbrella companies under Schedule 44, Section 2 of The Income Tax (Earnings and Pensions) Act 2003.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
Most agency workers must be treated as employees for Income Tax and National Insurance contributions (NICs) purposes by the agencies that pay them. These agencies are required to make deductions of Income Tax and employee NICs, where these are due, from the workers’ pay in the same way and at the same level as with direct employees. The agencies will also be liable to pay employer NICs, where these are due, in respect of payments to the workers.
The rules for agencies do not apply to umbrella companies, which engage workers under a contract of employment. Like all employers, umbrella companies are responsible for making deductions of Income Tax and employee NICs from their employees’ pay and for paying employer NICs where they are due.