Asked by: Sarah Edwards (Labour - Tamworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to help support greater transparency in the fees associated with accepting card payments.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Government recognises the importance of ensuring that the cost of accepting payments, including cards, is fair to all parties, and that our payment systems work for all.
The Payment Systems Regulator (PSR), the UK’s economic regulator for payments, has recently concluded two market reviews into card fees to assess if increases in prices are fair and reflect a market that is operating well. The PSR is now considering its next steps, including remedies designed to increase the transparency of scheme and processing fees.
https://www.psr.org.uk/our-work/market-reviews/
There are a number of fees that can be placed on merchants, including interchange fees which are governed by the Interchange Fee Regulations 2015 (IFR). The IFR caps the fees that are paid by a merchant (or trader) to the card user’s bank. The caps are currently set at 0.2% for every transaction using a debit card, and 0.3% for credit card transactions.
The Government is also committed to ensuring that payment options remain affordable and accessible for small businesses, including through measures that promote competition and reduce unnecessary costs. The National Payments Vision, published in November 2024, sets out the Government’s ambitions for a trusted, world-leading payments ecosystem delivered on next generation technology, where consumers and businesses have a choice of payment methods to meet their needs.
This included the ambition for seamless account-to-account payments to be developed as a ubiquitous payment method – enabling consumers to pay digitally for goods and services in shops and online, without using a card. This would provide greater choice to consumers and merchants in how they make and receive payments, which in turn is likely to spur innovation and downward competitive pressure on the cost of payments.
Asked by: Sarah Edwards (Labour - Tamworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps her Department is taking to support competition in the payments market to reduce fees for small businesses.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Government recognises the importance of ensuring that the cost of accepting payments, including cards, is fair to all parties, and that our payment systems work for all.
The Payment Systems Regulator (PSR), the UK’s economic regulator for payments, has recently concluded two market reviews into card fees to assess if increases in prices are fair and reflect a market that is operating well. The PSR is now considering its next steps, including remedies designed to increase the transparency of scheme and processing fees.
https://www.psr.org.uk/our-work/market-reviews/
There are a number of fees that can be placed on merchants, including interchange fees which are governed by the Interchange Fee Regulations 2015 (IFR). The IFR caps the fees that are paid by a merchant (or trader) to the card user’s bank. The caps are currently set at 0.2% for every transaction using a debit card, and 0.3% for credit card transactions.
The Government is also committed to ensuring that payment options remain affordable and accessible for small businesses, including through measures that promote competition and reduce unnecessary costs. The National Payments Vision, published in November 2024, sets out the Government’s ambitions for a trusted, world-leading payments ecosystem delivered on next generation technology, where consumers and businesses have a choice of payment methods to meet their needs.
This included the ambition for seamless account-to-account payments to be developed as a ubiquitous payment method – enabling consumers to pay digitally for goods and services in shops and online, without using a card. This would provide greater choice to consumers and merchants in how they make and receive payments, which in turn is likely to spur innovation and downward competitive pressure on the cost of payments.
Asked by: Sarah Edwards (Labour - Tamworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what she is doing to reduce the cost of accepting payments for small businesses.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Government recognises the importance of ensuring that the cost of accepting payments, including cards, is fair to all parties, and that our payment systems work for all.
The Payment Systems Regulator (PSR), the UK’s economic regulator for payments, has recently concluded two market reviews into card fees to assess if increases in prices are fair and reflect a market that is operating well. The PSR is now considering its next steps, including remedies designed to increase the transparency of scheme and processing fees.
https://www.psr.org.uk/our-work/market-reviews/
There are a number of fees that can be placed on merchants, including interchange fees which are governed by the Interchange Fee Regulations 2015 (IFR). The IFR caps the fees that are paid by a merchant (or trader) to the card user’s bank. The caps are currently set at 0.2% for every transaction using a debit card, and 0.3% for credit card transactions.
The Government is also committed to ensuring that payment options remain affordable and accessible for small businesses, including through measures that promote competition and reduce unnecessary costs. The National Payments Vision, published in November 2024, sets out the Government’s ambitions for a trusted, world-leading payments ecosystem delivered on next generation technology, where consumers and businesses have a choice of payment methods to meet their needs.
This included the ambition for seamless account-to-account payments to be developed as a ubiquitous payment method – enabling consumers to pay digitally for goods and services in shops and online, without using a card. This would provide greater choice to consumers and merchants in how they make and receive payments, which in turn is likely to spur innovation and downward competitive pressure on the cost of payments.
Asked by: Sarah Edwards (Labour - Tamworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the effectiveness of including Cyber Attacks within the Pool Reinsurance Company Limited Fund.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
Pool Reinsurance, or Pool Re, was created to ensure the effective functioning of the UK’s terrorism insurance market. The government do not have any plans to extend Pool Re’s remit to include further cyber-related risks.
Asked by: Sarah Edwards (Labour - Tamworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps her Department is taking to help support mortgage prisoners.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
The Government understands the challenges that mortgage prisoners face and will work with regulators and the industry to ensure that this issue is properly considered.
There are significant measures in place to protect vulnerable mortgage borrowers across the mortgage market, including mortgage prisoners. Financial Conduct Authority (FCA) rules require lenders to engage individually with their customers who are struggling or who are worried about their payments in order to provide tailored support. Closed book lenders must also comply with the FCA’s Consumer Duty, which ensures firms prioritise fair treatment and good outcomes for their customers.
Additionally, the Government has a number of measures in place to help people to avoid repossession, including Support for Mortgage Interest (SMI) loans for those in receipt of an income-related benefit; the Housing Loss Prevention Advice Service (HLPAS); and protection in the courts through the Pre-Action Protocol, which makes it clear that repossession must always be the last resort for lenders.
Asked by: Sarah Edwards (Labour - Tamworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department plans to support the road haulage industry to meet government net zero targets through the National Wealth Fund.
Answered by James Murray - Chief Secretary to the Treasury
The National Wealth Fund will invest in pursuit of the government’s growth and clean energy priorities to support the delivery of the Industrial Strategy and Britain’s acceleration to net zero. The National Wealth Fund will continue to invest in the UK Infrastructure Bank’s previous priority sectors, which include transport and clean energy.
Individual investments will be considered on a case-by-case basis in line with the NWF’s mandate and strategic priorities, which can be found on www.uknwf.org.uk.