Asked by: Steff Aquarone (Liberal Democrat - North Norfolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to ensure the timely release of funds by banks to executors of wills.
Answered by Emma Reynolds - Economic Secretary (HM Treasury)
In recent years banks and building societies have sought to make the bereavement process easier by increasing the amount they will release without needing a grant of probate. As such the threshold varies between different firms. The nominal threshold in legislation is to require probate to be obtained for estates above £5000 in value (The Administration of Estates (Small Payments) Act 1965), although in practice many financial institutions operate a threshold of £20,000. Banks also differ on issues such as whether they are willing to release funds for funeral and other essential expenses ahead of probate being granted. These are commercial decisions.
UK banks and building societies are regulated by the Financial Conduct Authority (FCA). The FCA does not have specific rules or guidance regarding probate in its rules. Nonetheless, banks are bound by the FCA’s Consumer Duty which requires firms to act to deliver good outcomes and avoid causing harm to customers. The FCA also provides guidance on firms providing fair treatment for vulnerable customers, which includes those going through a bereavement. If an executor is having a dispute with a bank, then they will be able to raise a formal complaint. The FCA’s rules require firms to properly investigate all complaints, and it continues to monitor firms’ complaint handling processes.
The Government is also supportive of previous industry efforts to improve handling of these sensitive cases, including the Financial Services Death Notification Service developed by UK Finance.
Asked by: Steff Aquarone (Liberal Democrat - North Norfolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when she plans to respond to the correspondence of 26 November 2024 from the hon. Member for North Norfolk, reference SA01948.
Answered by Darren Jones - Chief Secretary to the Treasury
This correspondence is receiving urgent attention and a response will be sent from the Chief Secretary to the Treasury to the hon. Member for North Norfolk in due course.
Asked by: Steff Aquarone (Liberal Democrat - North Norfolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will take steps to support those asked to pay large interest payments on pension contributions as a result of the McCloud judgement.
Answered by Darren Jones - Chief Secretary to the Treasury
The purpose of the McCloud remedy is to ensure affected public service pension scheme members are put back into the same position they would have been if the discrimination identified by the Court of Appeal in 2018 had not occurred. It is therefore necessary to apply interest to payments to members or the scheme that would otherwise have been made at an earlier time. Members who need to pay a contribution adjustment can choose whether to make payment after receiving their Remediable Saving Statement or to defer until their retirement. Scheme managers also have scope to support members, for example by allowing payments to be spread over time.