Asked by: Tonia Antoniazzi (Labour - Gower)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of reducing the level of ATM interchange fees in the context of trends in the level of the cost of (a) labour and (b) the distribution of non-branch ATMs.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
The government recognises that cash continues to be used by millions of people across the UK, including those who may be in vulnerable groups.
The government legislated through the Financial Services and Markets Act 2023 to establish a new legislative framework to protect access to cash. This establishes the Financial Conduct Authority (FCA) as the lead regulator for access to cash and provides it with responsibility and powers to seek to ensure reasonable provision of cash withdrawal and deposit facilities. The FCA is currently holding a consultation on its proposed regulatory approach: FCA Access to Cash Consultation
Decisions regarding the funding arrangements of an ATM network are taken by the parties involved. LINK (the scheme that runs the UK's largest ATM network) has commitments to protect the broad geographic spread of free-to-use ATMs and is held to account against these commitments by the Payment Systems Regulator.
Asked by: Tonia Antoniazzi (Labour - Gower)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent steps he has taken to ensure fairness in the operation of the tax system.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
It is right that everyone contributes to sustainable public finances and the government is ensuring those with the broadest shoulders pay their fair share.
Spring Budget took steps to tackle non-compliance and improve HMRC’s ability to collect tax debts.
Because of our commitment over 13 years to help the lowest earners, people can now earn over £1000 a month free from income tax or National Insurance.
Asked by: Tonia Antoniazzi (Labour - Gower)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to help people in debt as a result of interest being accrued on pay day loans.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Government does not hold data on the trends in the level of interest charged by payday loan companies.
However, the Government believes that consumers should be protected from unfair costs in the payday lending market. That is why the Government legislated to require the Financial Conduct Authority (FCA) to introduce a cap on the cost of payday loans. This came into force in January 2015 and means that payday loans have a total cost cap of 100%, ensuring that consumers never need to pay back more than twice the sum they have borrowed. This cap also includes a daily interest cap of 0.8%, lowering prices for borrowers who pay back loans on time.
The FCA has also conducted a review of the cap. In July 2017 it released a Feedback Statement as part of its review of the high-cost credit market. This showed that the payday cap has been effective, leading to total savings of approximately £150 million for the 760,000 individuals using payday loans each year, and highlighted that many payday lenders lend at well below the 100% total cost cap. Overall, the review concluded that consumers pay less, repay on time more often, and are less likely to need help from debt charities.
More broadly, the FCA requires regulated lenders to treat customers fairly when they are in financial difficulty. FCA guidance sets out that firms should provide support through tailored forbearance options for borrowers which ensures they receive the most appropriate and sustainable support for the long-term, including payment holidays where these are in the interest of the consumer. On 25 May 2023, the FCA published a consultation on how it plans to incorporate aspects of this tailored support guidance into its rules. The consultation can be found here: https://www.fca.org.uk/publications/consultation-papers/cp23-13-strengthening-protections-borrowers-financial-difficulty-consumer-credit-mortgages
For people in problem debt who do need help, the Government continues to maintain record levels of funding for free-to-client debt advice in England, bringing the 2023-24 debt advice budget for the Money and Pensions Service (MaPS) to £92.7 million. MaPS is the single largest funder of debt advice in England. It works alongside partners across the UK to make debt advice easier and quicker to access, and to improve standards and quality across the sector. In addition to this, the Breathing Space scheme which launched in England and Wales in 2021, offers people in problem debt a period of protection of up to 60 days on most enforcement action, interest, fees and charges, and encourages them to seek professional debt advice. As of May 2023 over 130,000 people have accessed the scheme’s vital protections.
Asked by: Tonia Antoniazzi (Labour - Gower)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department is taking steps to regulate the interest rates offered by payday loan providers.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Government does not hold data on the trends in the level of interest charged by payday loan companies.
However, the Government believes that consumers should be protected from unfair costs in the payday lending market. That is why the Government legislated to require the Financial Conduct Authority (FCA) to introduce a cap on the cost of payday loans. This came into force in January 2015 and means that payday loans have a total cost cap of 100%, ensuring that consumers never need to pay back more than twice the sum they have borrowed. This cap also includes a daily interest cap of 0.8%, lowering prices for borrowers who pay back loans on time.
The FCA has also conducted a review of the cap. In July 2017 it released a Feedback Statement as part of its review of the high-cost credit market. This showed that the payday cap has been effective, leading to total savings of approximately £150 million for the 760,000 individuals using payday loans each year, and highlighted that many payday lenders lend at well below the 100% total cost cap. Overall, the review concluded that consumers pay less, repay on time more often, and are less likely to need help from debt charities.
More broadly, the FCA requires regulated lenders to treat customers fairly when they are in financial difficulty. FCA guidance sets out that firms should provide support through tailored forbearance options for borrowers which ensures they receive the most appropriate and sustainable support for the long-term, including payment holidays where these are in the interest of the consumer. On 25 May 2023, the FCA published a consultation on how it plans to incorporate aspects of this tailored support guidance into its rules. The consultation can be found here: https://www.fca.org.uk/publications/consultation-papers/cp23-13-strengthening-protections-borrowers-financial-difficulty-consumer-credit-mortgages
For people in problem debt who do need help, the Government continues to maintain record levels of funding for free-to-client debt advice in England, bringing the 2023-24 debt advice budget for the Money and Pensions Service (MaPS) to £92.7 million. MaPS is the single largest funder of debt advice in England. It works alongside partners across the UK to make debt advice easier and quicker to access, and to improve standards and quality across the sector. In addition to this, the Breathing Space scheme which launched in England and Wales in 2021, offers people in problem debt a period of protection of up to 60 days on most enforcement action, interest, fees and charges, and encourages them to seek professional debt advice. As of May 2023 over 130,000 people have accessed the scheme’s vital protections.
Asked by: Tonia Antoniazzi (Labour - Gower)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of trends in the level of interest charged by payday loan companies.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Government does not hold data on the trends in the level of interest charged by payday loan companies.
However, the Government believes that consumers should be protected from unfair costs in the payday lending market. That is why the Government legislated to require the Financial Conduct Authority (FCA) to introduce a cap on the cost of payday loans. This came into force in January 2015 and means that payday loans have a total cost cap of 100%, ensuring that consumers never need to pay back more than twice the sum they have borrowed. This cap also includes a daily interest cap of 0.8%, lowering prices for borrowers who pay back loans on time.
The FCA has also conducted a review of the cap. In July 2017 it released a Feedback Statement as part of its review of the high-cost credit market. This showed that the payday cap has been effective, leading to total savings of approximately £150 million for the 760,000 individuals using payday loans each year, and highlighted that many payday lenders lend at well below the 100% total cost cap. Overall, the review concluded that consumers pay less, repay on time more often, and are less likely to need help from debt charities.
More broadly, the FCA requires regulated lenders to treat customers fairly when they are in financial difficulty. FCA guidance sets out that firms should provide support through tailored forbearance options for borrowers which ensures they receive the most appropriate and sustainable support for the long-term, including payment holidays where these are in the interest of the consumer. On 25 May 2023, the FCA published a consultation on how it plans to incorporate aspects of this tailored support guidance into its rules. The consultation can be found here: https://www.fca.org.uk/publications/consultation-papers/cp23-13-strengthening-protections-borrowers-financial-difficulty-consumer-credit-mortgages
For people in problem debt who do need help, the Government continues to maintain record levels of funding for free-to-client debt advice in England, bringing the 2023-24 debt advice budget for the Money and Pensions Service (MaPS) to £92.7 million. MaPS is the single largest funder of debt advice in England. It works alongside partners across the UK to make debt advice easier and quicker to access, and to improve standards and quality across the sector. In addition to this, the Breathing Space scheme which launched in England and Wales in 2021, offers people in problem debt a period of protection of up to 60 days on most enforcement action, interest, fees and charges, and encourages them to seek professional debt advice. As of May 2023 over 130,000 people have accessed the scheme’s vital protections.
Asked by: Tonia Antoniazzi (Labour - Gower)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, in the context of plans to introduce a mandatory reimbursement framework for cases of authorised push payment fraud, what steps his Department has taken to assess the potential merits of requiring (a) online platforms and (b) telecoms companies to implement increased fraud prevention measures alongside introducing that framework.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Government recognises the growing threat posed to consumers by Authorised Push Payment (APP) fraud, with increasingly sophisticated scams that can be detrimental to people’s lives.
That is why the Government has introduced legislation as part of the Financial Services & Markets Bill to enable the Payment Systems Regulator to require payment service providers (including banks) to reimburse APP scam victims, and placed a duty on the PSR to act in relation to the Faster Payments system (over which vast majority of APP scams currently occur) within 6 months of the legislation coming into force. Following Royal Assent, the PSR will have the powers to deliver an effective reimbursement requirement, and the Government believes this will ensure more consistent and comprehensive reimbursement for APP scam victims.
In its recent consultation on mandatory APP scam reimbursement, the PSR has proposed requiring all banks and other payment service providers sending payments over the Faster Payments system to reimburse APP scam victims, including requiring that vulnerable customers are reimbursed without exception. The Government looks forward to hearing the outcomes of this consultation.
It is right that all industries at risk of facilitating fraud should be prioritising protecting their customers, and the Government is taking steps to ensure that is the case, including through the Online Safety Bill. We will continue to monitor cross-sector efforts to mitigate fraud and protect customers, and will ensure that those sectors which give rise to fraud risk make a meaningful contribution to the reduction of fraud in the UK, including through the forthcoming Fraud Strategy.
Asked by: Tonia Antoniazzi (Labour - Gower)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the Government is taking steps to ensure that that the Mandatory Reimbursement Framework prioritises protection for vulnerable customers.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Government recognises the growing threat posed to consumers by Authorised Push Payment (APP) fraud, with increasingly sophisticated scams that can be detrimental to people’s lives.
That is why the Government has introduced legislation as part of the Financial Services & Markets Bill to enable the Payment Systems Regulator to require payment service providers (including banks) to reimburse APP scam victims, and placed a duty on the PSR to act in relation to the Faster Payments system (over which vast majority of APP scams currently occur) within 6 months of the legislation coming into force. Following Royal Assent, the PSR will have the powers to deliver an effective reimbursement requirement, and the Government believes this will ensure more consistent and comprehensive reimbursement for APP scam victims.
In its recent consultation on mandatory APP scam reimbursement, the PSR has proposed requiring all banks and other payment service providers sending payments over the Faster Payments system to reimburse APP scam victims, including requiring that vulnerable customers are reimbursed without exception. The Government looks forward to hearing the outcomes of this consultation.
It is right that all industries at risk of facilitating fraud should be prioritising protecting their customers, and the Government is taking steps to ensure that is the case, including through the Online Safety Bill. We will continue to monitor cross-sector efforts to mitigate fraud and protect customers, and will ensure that those sectors which give rise to fraud risk make a meaningful contribution to the reduction of fraud in the UK, including through the forthcoming Fraud Strategy.
Asked by: Tonia Antoniazzi (Labour - Gower)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what his Department’s ready reckoner estimate is of the effects on tax receipts of a one percentage point increase in the rate of ring fence corporation tax in financial years (a) 2022-23, (b) 2023-24 and (c) 2024-25; and if he will place a copy of those estimates in the Library.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
The Government does not typically provide assessments of changes to ring fence Corporation Tax and does not propose doing so in this case.
The Government places additional taxes on the extraction of oil and gas, with companies engaged in the production of oil and gas on the UK Continental Shelf subject to headline tax rates on their profits that are currently more than double those paid by other businesses. To date, the sector has paid more than £375 billion in production taxes.
The Government keeps all taxes under review, and any changes are considered and announced by the Chancellor.
Asked by: Tonia Antoniazzi (Labour - Gower)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many beer duty returns (a) have been received by HMRC and (b) were nil returns, per month for each of the last 18 months for which data is available; and if he will make a statement.
Answered by Jesse Norman
The information requested is provided in the table below:
Beer Duty Returns | ||
Month | (a) Received by HMRC | (b) Nil returns |
August 2019 | 2,100 | 415 |
September 2019 | 1,991 | 441 |
October 2019 | 1,602 | 489 |
November 2019 | 2,051 | 448 |
December 2019 | 2,009 | 453 |
January 2020 | 2,020 | 482 |
February 2020 | 2,039 | 457 |
March 2020 | 2,011 | 521 |
April 2020 | 1,610 | 756 |
May 2020 | 1,607 | 687 |
June 2020 | 1,785 | 596 |
July 2020 | 1,337 | 491 |
August 2020 | 1,675 | 468 |
September 2020 | 1,547 | 455 |
October 2020 | 1,472 | 468 |
November 2020 | 1,520 | 546 |
December 2020 | 1,520 | 523 |
January 2021 | 1,706 | 556 |
Asked by: Tonia Antoniazzi (Labour - Gower)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to his oral contribution of 25 November 2020, Official Report column 828, on public sector workers who earn below the median wage of £24,000 being guaranteed a pay rise of at least £250, on what basis that median wage estimate was calculated.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The Office for National Statistic’s ‘Annual Survey of Hours and Earnings’ (ASHE) shows that median basic weekly pay for the public sector is £504. This suggests that just under half of the public sector have basic weekly pay of £460 (whole economy median weekly basic pay) and less.
Since the uplift will be applied on a Full Time Equivalent (FTE) basis, we have used ASHE microdata to also exclude those earning less than the median but not on an hourly basis. This showed that 38% of the public sector earn less than £24,000 on an FTE basis.
The Office for National Statistics estimate that public sector employment was 5.51 million in June 2020. This includes: The National Health Service, central government and local government.
Sources: Table 13.a at https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/datasets/publicandprivatesectorashetable13
ONS Public sector employment, UK: June 2020: https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/publicsectorpersonnel/bulletins/publicsectoremployment/june2020
The £24,000 earnings floor is taken from the Office for National Statistic’s ‘Annual Survey of Hours and Earnings’. This data gives whole economy median basic weekly earnings for all employees of £460. The equivalent annually is £23,985 (calculated by dividing by 7 days a week, and multiplying by 365 days a year).
Source: Table 1.3a at https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/datasets/allemployeesashetable1