Oral Answers to Questions

Teresa Pearce Excerpts

Tuesday 26th June 2012 Commons Chamber

The Chancellor of the Exchequer was asked—

[Teresa Pearce (Erith and Thamesmead) (Lab)]

1. When he expects to publish the consultation document on tackling excessive card surcharges.

[Mr Andrew Love (Edmonton) (Lab/Co-op)]

8. When he expects to publish the consultation document on tackling excessive card surcharges.

[The Financial Secretary to the Treasury (Mr Mark Hoban)]

The Department for Business, Innovation and Skills is taking forward work on excessive credit card surcharges. I understand that the consultation to seek views on how and when a ban might be applied is going on in the summer.

[Teresa Pearce]

For many years, families in my constituency have faced surcharges—sometimes 240 times the actual processing costs—when booking plane tickets. There are now charges on theatre tickets and utility bills and some funeral directors are applying them. Given the prevalence of this issue, does the Chancellor still intend to ban excessive debit and credit card charges by the end of the year?

[Mr Hoban]

The hon. Lady is absolutely right to highlight the costs imposed by this on our constituents. Our estimate was that in 2010 nearly £500 million was spent by consumers on surcharges. It is still our intention to ban them. Both consumers and businesses should be clear that after many years of inaction by our predecessors, it is this Government’s intention to ban these excessive charges.