Financial Services and Markets Bill

Debate between Viscount Trenchard and Baroness Bennett of Manor Castle

Report stage
Tuesday 13th June 2023 Lords Chamber

[Viscount Trenchard (Con)]

My Lords, I am pleased again to support the noble Lord, Lord Sharkey, in his noble quest to protect mortgage prisoners, as I did when he tabled a similar amendment in Grand Committee.

I appreciated the commitment of my noble friend Lord Harlech in his winding up that the Government would consider the proposals of Martin Lewis, the LSE and the APPG on Mortgage Prisoners that have been put forward. As he said, mortgage prisoners are the forgotten victims of the financial crash. The banks were bailed out at the expense of these borrowers. Furthermore, the margins between the Bank of England base rate and typical standard variable rates have expanded by more than double.

The problem is that the unlicensed lenders that bought the mortgage books of this group of borrowers do not offer the fixed-rate products that are available to borrowers in the active market. I stress that my motive in supporting the noble Lord’s amendment is to support this group of genuine mortgage prisoners, who are unable to switch to a new fixed-rate mortgage despite having been up to date and not missed any payments.

The Government have acknowledged the detriment caused to mortgage prisoners. This Bill offers an opportunity to provide them with some relief from the difficulties that they are trying to cope with. I hope to hear from my noble friend some concrete plan to assist them as the Government have done for many disadvantaged groups—as a result of the Covid pandemic, for example. I look forward to the Minister’s reply.

[Baroness Bennett of Manor Castle (GP)]

My Lords, I rise briefly, having spoken on this issue both in Committee and back in the last financial services Bill, just to put a human face on this. In doing that, I remind the Minister of the representatives of the mortgage prisoners whom we heard from at the meeting in the Treasury a couple of months ago.

The face I have chosen to put on is that of 63 year- old Jacqueline Burns, who spoke to the I newspaper in April about what her life is like now that she is a mortgage prisoner. She said:

“I am cutting back on food because I can’t afford to eat … I am so stressed out right now, I am at the end of my tether”.


The story, as Ms Burns told the I, was that she bought her home in Cambridgeshire for £69,000 in 2006 from SPML, which was an arm of Lehman Brothers. Ms Burns remembers that the broker “was really nice” and “pushed me … towards SPML”. We can all probably imagine why that was. The situation in which Ms Burns now finds herself is that she is on the standard variable rate and owes £109,000; remember that she paid £69,000 for the house. Because of the rise in interest rates, her mortgage payments have gone up from £333 a month to nearly £700 a month. She simply cannot pay.

She is in this situation because of a failure of government regulation, and because of arrangements made by the Government that made a significant profit. There is a huge moral responsibility. If we think about the costs that must be being imposed on the NHS by people who eventually become homeless and need council homes et cetera, it is clear that the Government should look not just at their moral responsibility; they also need to ensure that people get a fair deal and do not end up—even if the Government are not thinking of anything else—costing the taxpayer a great deal.

Financial Services and Markets Bill

Debate between Viscount Trenchard and Baroness Bennett of Manor Castle

Committee stage
Monday 13th March 2023 Grand Committee

[Viscount Trenchard (Con)]

My Lords, I am delighted to support Amendment 197, moved by the noble Lord, Lord Sharkey, and to which I have added my name. I served on the former Services Sub-Committee of the former European Union Committee with the noble Lord and have been impressed by his accurate understanding of, and thoughtful approach to, this and other financial issues.

The noble Lord explained the reasons for his amendment with his customary clear logic. I will not take up the Committee’s time by repeating them. I particularly endorse the introduction of a cap of 2% over the standard variable rate for mortgage prisoners. UK Finance has identified 195,000 borrowers from inactive lenders, of whom 47,000 have been identified as mortgage prisoners.

I welcome the FCA’s recent review of this problem and its review of the effectiveness of its regulatory interventions to remove barriers to switching. Recently, only a small number of borrowers have been able to switch from an inactive lender to a new deal with an active lender. I share the FCA’s hope that more mortgage prisoners will be able to switch their mortgage and I hope that the Minister will support this amendment.

[Baroness Bennett of Manor Castle (GP)]

My Lords, I rise briefly to offer Green support for this amendment and to agree entirely with everything that has been said thus far. I feel a sense of déjà vu all over again. I was just looking back at the comments I made in 2021, when, it is worth noting for the record, this issue of mortgage prisoners went to ping-pong: the House of Lords passed an amendment, and it went back and forth between the two Houses. Back then, we were talking about people suffering under high rates of 4% or 5%, and some were suffering with the vulture funds of 9%. As we have heard set out clearly, the situation has not improved but has got much worse, and we also have a cost of living crisis.

The noble Lord, Lord Sharkey, noted that Martin Lewis is now involved in this, with his crucial supporting research. What a state our country is in when everyone can feel a great sense of relief and hope because someone who is, after all, only a private individual has stepped in where Parliament has failed. Surely this is the stage where Parliament—or the Government—can step up and rescue people trapped in often terrible situations through no fault of their own.

Nuclear Energy (Financing) Bill

Debate between Viscount Trenchard and Baroness Bennett of Manor Castle

Report stage
Thursday 24th March 2022 Lords Chamber

[Viscount Trenchard (Con)]

My Lords, as acknowledged by the noble Lord, Lord Oates, Amendment 1 was debated in Committee. And, as acknowledged by the noble Viscount, Lord Hanworth, just now, I also thought that my noble friend Lord Howell explained very well, both in Committee and today, that value for money is totally subjective. The judgments that have to be made will, of course, take account of the financial plans for projects. I thought that the noble Baroness, Lady Worthington, was spot on in referring to Switzerland, whose electricity grid depends almost entirely on hydro and nuclear. It is hard to put a price on the huge value that energy security gives that country.

Amendment 3, in the names of the noble Lords, Lord Oates and Lord Stunell, is unnecessary, because the Secretary of State will clearly consider this point in assessing any applicant company under the designation process. Furthermore, Ofgem is bound to protect consumer interests as part of the consultation process. I recognise that electricity bills are already rising exponentially, and I expressed concern in Committee that payments under the RAB model will further increase the subsidies that consumers are required to pay. The solution here is to reduce the subsidies paid to renewables projects, to provide a more even balance between support for those sectors and support for the nuclear sector, which has been left out in the cold until very recently.

As for Amendment 10, in the name of the noble Lord, Lord Oates, and others, I fear that the costs of administering such a complicated exemption would far outweigh any possible benefits to the particular groups of people concerned. Besides, there are other groups facing difficulty in meeting higher electricity bills, such as pensioners, who are seriously disadvantaged by the suspension of the triple lock. The best way to assist the people whom noble Lords who put their names to this amendment seek to assist is to enable a stable, well-funded energy mix, including a significant amount of nuclear, both large gigawatt plants and smaller, more flexible SMRs and AMRs. On the latter, the Government are trying to reinvent the wheel and are moving much too slowly in the case of JAEA’s HTGR technology, which has been operating for 10 years and is inherently safe.

I hope that the Prime Minister’s much greater enthusiasm for nuclear, revealed in recent weeks, will lead to rapid changes to the very cautious current plans of BEIS, in three phases, merely to establish a demonstration by the early 2030s. We need this technology yesterday, and we should be rolling it out commercially before the end of the decade. The Times reported last week that Ministers are exploring the creation of a state-owned nuclear company that would take stakes in future nuclear projects, to reduce our reliance on foreign energy. That is very welcome. What a pity it is that such a company was not in existence before Hitachi made the decision to cancel the Horizon project in September 2020.

[Baroness Bennett of Manor Castle (GP)]

My Lords, I speak in favour of Amendments 1 and 3 in the name of the noble Lord, Lord Oates, and in favour of Amendment 10, also in his name and to which I have attached my name.

Speaking for the first time on Report on the Bill, I am getting something of a sense of déjà vu. I do not know whether the ministerial Front Bench has brought its snacks this time, but it can sit and watch the show as we see enthusiasm from both Labour and Tory Benches for new nuclear power.

It is interesting to go back to the Explanatory Notes. The policy background that explains the purpose of this Bill is

“a clean energy system that is reliable and affordable for energy consumers”.

These three amendments particularly address that last point—although the comments of the noble Lord, Lord Howell, on reliability were also interesting. The words that he used were interesting: “decentralised”, “security” and “stability”. Why put all your eggs in a few large baskets rather than into an extremely decentralised system of renewables, storage and, particularly, energy conservation? That is a genuinely diverse and secure supply. Ask the Japanese about what happened after Fukushima, and they will tell you that, if nuclear goes wrong, you can lose the lot—and then you have a very large problem, as the Japanese did.

With regard to security and affordability, there is an interesting letter in the Financial Times this morning, headed:

“Arguing for more nuclear power was wrong then too”,


from Andrew Warren, chair of the British Energy Efficiency Federation, in Cambridge. It picks up my point that the cleanest, greenest energy that you can possibly have is the energy you do not use. It also comes to the point about value for money and the argument that new nuclear is essential. Mr Warren says that

“back in 2006, when the then Labour government … committed to a ‘family’ of further nuclear power stations”,

it was on the basis that our usage of electricity was going to go up enormously and therefore we needed new nuclear power stations, which of course did not happen. The letter points out:

“UK electricity consumption has in fact gone down by over 15 per cent since 2006. In other words, all that expectation of demand growth which was used to justify new nuclear power stations was grossly exaggerated … by over 30 per cent.”


As Mr Warren notes,

“no new nuclear power stations have been added to the system. The system hasn’t collapsed, and it’s also far less carbon intensive.”

I can imagine that many noble Lords might say at this point, “Well, yes, but we have to electrify transport and home heating”. However, if—to use a word associated with the Prime Minister—we went gung-ho on energy efficiency and a modal shift to walking, cycling and public transport instead of private cars, we could greatly reduce the kind of assumptions that are made. The policy background suggests that the UK electricity supply will need to double and low-carbon sources quadruple by 2050. If we build a different kind of society that needs less power, that is an extremely cost-effective way forward.

To come back to cost effectiveness, I have looked at some figures on this. The Nuclear Industry Association has suggested that the proposed new nuclear plants at Sizewell, Wylfa and Bradwell could come in at £60 per megawatt hour. We have just seen, in the most recent offshore wind projects selected for round 3 of the contract for difference allocations, strike prices as low as £39.65 per megawatt hour. The noble Viscount, Lord Trenchard, referred to concerns about green subsidies. These do not need subsidies because they are cheaper than any other source of power. That is offshore wind, without even coming to the fact that onshore wind, which I am delighted to see the Government now moving towards, is much cheaper again, as indeed is solar.

Of course there is Hinkley Point C, with a £92.50 contract. The nuclear industry says, “Oh, it will all get better eventually”. It is confident about the £60 figure—and we know how confidence about the cost of nuclear power has worked out in the past—and that over the long term it will eventually get to £40, which is what offshore wind is delivering now.

I particularly want to address Amendment 10, as the noble Lord, Lord Oates, did so effectively in introducing this group, to which I have attached my name, and to look at where we are with fuel poverty. From 1 April, 27% of UK households are expected to be in fuel poverty—and that is a watered-down definition of fuel poverty—so that is 6.3 million households. Each year around 10,000 people die prematurely as a result of cold homes. Again with regard to the policy landscape, if we insulated those homes, those people would not die prematurely. It is interesting that the charity National Energy Action notes that this seems to be within the bounds of some perverse statistical acceptability; we just accept it as being normal and continue to go on as we are.

Environment Bill

Debate between Viscount Trenchard and Baroness Bennett of Manor Castle

Committee stage
Monday 5th July 2021 Lords Chamber

[Baroness Bennett of Manor Castle (GP) [V]]

My Lords, it is a pleasure to follow the noble Baroness, Lady Jones of Whitchurch, even after a five-day interval and in a debate truncated by a perhaps now unnecessary withdrawal of a number of noble Lords. For the convenience of the Committee, I remind everyone that we are speaking about amendments that are all about the long-awaited and much-delayed bottle deposit scheme for England, an area in which we are notably world leading in foot dragging.

I shall give a few statistics. Ten other countries in Europe are operating these schemes, with bottle-recycling success rates running from an outstanding 98.5% in Germany, where of course they have had lots of practice since they started in 2003. Even down at the bottom of the pack, Estonia has a very respectable—certainly by our standards—83.7% bottle return rate. That is why Amendment 133, which sets a deadline for implementation, is so important, and I would have attached my name to it had there been space. I agree with the noble Baroness, Lady Jones, that it should be earlier still; it could have been delivered years ago, but January 2023 is practical. It certainly should not be left outside the term of this current Government—assuming of course that they continue for that long.

I want to speak in support of all the amendments in this group, with the partial exception of Amendment 134B, which would exempt small brewers. That is not because I do not think we need to consider such small producers, but rather that Amendment 134A in the names of the same noble Lords, the noble Viscount, Lord Trenchard, and the noble Lord, Lord Berkeley, is broader and more useful, covering all kinds of producers. There clearly needs to be some easy and simple way for start-up businesses, such as brewers or soft drink or juice producers, to access the scheme. One route might be to require larger companies to allow smaller companies to piggyback on their schemes.

I will focus my contribution on Amendment 134, which appears in my name. I thank the noble Baroness, Lady Jones of Whitchurch, for her expression of support for the amendment. As with the earlier amendment on nappies, I declare the support from the aluminium industry association, Alupro, in preparing and discussing this amendment. I am sure that many noble Lords are aware that, for all the UK’s inadequate performance on recycling, it does relatively well in recycling aluminium compared to other materials, for reasons including the value of the material, with aluminium packaging recycling reaching its highest ever rate in 2020, with 68% of the material placed on the market being recycled. That includes 82% of all aluminium beverage cans. Of course, this is a material that can be recycled indefinitely, unlike most plastic.

We should not forget that the best option, at the top of the waste pyramid, is to reduce packaging materials and have no container at all, followed then by reusing packaging. But for recycling, aluminium is a good choice. Alupro put it to me—and I see the force of the argument—that a scheme with a flat deposit amount for all containers, regardless of the size of the material, would lead to switching from multipacks of aluminium cans to larger format plastic bottles, due to the cumulative cost of the deposit fee on multipacks. For example, a 20p flat deposit fee would add £4.80 to a 24-pack of cans, yet the deposit fee for the same volume of liquid in four plastic bottles would be just 80p. A 2019 poll of consumers found that a 20p flat deposit fee would encourage more than 60% of individuals to switch to large PET bottles at the expense of aluminium.

Alupro commissioned the research consultancy London Economics to look at consumer behaviour and the differential impacts of a flat or variable rate scheme. It found that the variable rate, as used in the successful Nordic schemes, would deliver significantly higher return rates in the first two years, while a flat-rate deposit would increase the amount of plastic sold and could lead to higher amounts of product wastage and increased portion sizes, which has an obvious impact on public health. It would also have a dramatic impact on the aluminium packaging sector, meaning up to 4.7 billion fewer cans, a very significant loss of revenue, and somewhere between 24% to 73% reduction in demand for aluminium cans in large multipacks. This is an industry with a case, and the practical sense of the bottle deposit varying according to the size of container is evident. Having seen such variable schemes in operation in various parts of Europe, with the scanning of bar-codes expected anyway to be part of the scheme, I think it presents no practical difficulties.

I know that the Minister, in the letter that he kindly sent to noble Lords on Friday afternoon, said—I paraphrase—“Let’s leave it to regulation and the implementation stage”. But why? Why not set out the basic ground rules now, in the Bill, to make sure that the scheme we get is fit for purpose and to give manufacturers time to prepare for implementation of the scheme as speedily as possible? That is what the very important Amendment 133, with which we started this group, seeks to attain.

[Viscount Trenchard (Con)]

My Lords, I declare my interests as stated in the register. I am pleased, as always, to follow the noble Baroness, Lady Bennett of Manor Castle, although I regret that the mover of the lead amendment, the noble Baroness, Lady Jones of Whitchurch, spoke five days ago; I had to look up Hansard to remember what she said. I have some sympathy with her Amendment 133, and agree that deposit return schemes should be introduced as soon as possible. I also believe that it is crucially important to get them right. It is worrying that Scotland has rushed ahead with its own scheme in an area where we definitely need UK-wide compatibility.

I support Amendment 133A in the names of the noble Baroness, Lady Jones, and the noble Viscount, Lord Colville of Culross, and others, that the scheme should, at a minimum, apply to PET, glass, aluminium and steel containers of volumes under 3 litres. I was a non-executive director of Lotte Chemical, at Wilton, on Teesside, for nine years, until the end of 2019, when the company was taken over by Alpek Polyester. It holds a 70% to 75% market share in the UK and Ireland as the leading supplier of polyethylene terephthalate. The plastics tax is likely to disadvantage PET producers in favour of glass and aluminium producers, with the unintended consequence that producers will switch from PET to glass and aluminium containers, which have a carbon footprint four or five times higher than PET.

The noble Baroness, Lady Bakewell of Hardington Mandeville, proposed exemptions from the plastics tax in her Amendment 141. The noble Baroness, Lady Jones of Whitchurch, expressed concern that the deposit return scheme might lead producers to switch from aluminium or glass to plastics. My concern is the reverse: besides the much lower carbon footprint associated with PET, does the noble Baroness really want to go back to the days when we cut our feet on discarded glass bottles on the beach?

The answer is not to penalise PET but to introduce a deposit return scheme as good as Germany’s, where 98% of PET bottles are collected for recycling. We have a long way to go. Germany is not often held up as an example of a unitary state with centralised powers, but the successful German deposit return scheme is a national scheme applied in all the Länder identically. If the United Kingdom is to prosper and global Britain is to succeed as we expect and hope, it follows that the leaders of our devolved authorities might be less impatient and more willing to work together to agree the details of one national scheme across the whole United Kingdom.

I will speak to Amendments 134A, 134B and 138A tabled in my name and the name of the noble Lord, Lord Berkeley, for whose support I am most grateful. These amendments take account of the needs of small producers, including small brewers, within the proposed deposit return scheme and recognise that the proposed measures will introduce significant, disproportionate costs and regulatory burdens for small businesses. I strongly support a deposit scheme such as that proposed in the Bill in principle, because it would help to tackle our waste and littering problems, but I ask my noble friend, is he mindful of the burdens on small businesses introduced by the Bill that may make it difficult for them to compete against much larger producers?

Many small brewers have had great difficulties surviving through the pandemic. With pubs closed, the only way that they could keep their products on sale has been to sell them in bottles and cans. It is very expensive for small brewers to make the necessary changes to packaging and labelling. It is likely that the four large brewers, which hold 88% of the beer market, will absorb the cost within their profit margin, thereby driving small challengers and craft beer manufacturers out of the market. Besides this, the costs and difficulties of participation in the scheme seem disproportionate for small brewers.

The fact that Scotland is ahead of the rest of the country is another problem. Brewers sell beer through wholesalers that sell in both England and Scotland. The brewers do not know how much beer their wholesalers sell in each part of the UK, yet the Scottish Government, in the operation of their scheme, have suggested that brewers will have to provide vast swathes of information that they do not currently possess. It is important that any deposit scheme adopted is completely interoperable with the Scottish one. Can my noble friend confirm that we will have, in effect, an identical scheme operating across the whole country? Is it not a problem that the Scottish scheme does not require recyclable products to be clearly labelled as such? There may well be unintended consequences if the schemes are not completely aligned.

Can my noble friend also say whether the Government accept the need for public education about the new scheme, which will be necessary to change public behaviour towards recycling? Does he agree that there is at least a strong case for exempting small breweries producing less than 900,000 pints a year from the new requirements? Indeed, the Government’s better regulation framework states that the default position

“is to exempt small and micro-businesses from … new regulatory”

requirements. While the Government have proposed in the recent consultation to allow small retailers to apply for exemptions under the deposit schemes, the same exception has not been extended to small producers.

In both the extended producer responsibility and the plastic packaging tax, the Government have included a de minimis threshold. In other areas, such as nutritional information, those with fewer than 10 full-time equivalent staff and a turnover of below £2 million are exempt. Therefore, I have tabled these amendments and ask my noble friend to consider how the Bill will support our small producers in a similar way to small retailers.

Under the proposed deposit scheme, small producers will have to redesign their labels to incorporate bar codes and logos at significant cost. They will have to pay a producer fee per container, which could cost the beer industry alone £200 million a year—the equivalent of a 6% increase in beer duty. They will have to collect and provide a great deal of additional information, which could lead to a delay of six weeks or more before they can bring new products to market and will impact innovative small brewers that produce seasonal and one-off beers.

Agriculture Bill

Debate between Viscount Trenchard and Baroness Bennett of Manor Castle

Committee stage & Committee: 6th sitting (Hansard) & Committee: 6th sitting (Hansard): House of Lords
Thursday 23rd July 2020 Lords Chamber

[Baroness Bennett of Manor Castle [V]]

My Lords, I offer the Green group’s support for Amendments 218 and 219. I associate myself particularly with the remarks of the noble Baroness, Lady Jones of Whitchurch, as she moved Amendment 218, referring to the lack of collective bargaining for agricultural workers in England as exceptionally damaging. As the noble Lord, Lord Whitty, commented, the loss of the Agricultural Wages Board was a disaster and something that I also opposed at the time.

Where I perhaps have cause for some pause is on

“an appropriate supply of seasonal agricultural workers”.

As a number of noble Lords have reflected, a heavy reliance on seasonal workers is not necessarily a way to produce fair, decent jobs, a well-populated countryside and strong communities in it. We want people who are resident year-round to have good, solid, reliable jobs. We should still think of agricultural labour as something that fits in with the desire of many people for part-time and flexible working that suits their needs. Back in 2013, I was at a Fruit Focus horticultural field day and spoke to a grower there who talked about how, back in the 1970s, housewives—as they were then described—students home from the holidays and people coming from the towns into surrounding orchards would work as and when they could. That of course requires a very different sort of agriculture and food supply system that supermarkets would have great difficulty with, but it would be a way of ensuring that people had the opportunity to earn money. Labour is available.

I contrast that with a report in the Times newspaper a couple of weeks ago reflecting, as many noble Lords have done, on how the lack of workers from the European Union and beyond this year has caused difficulties. An asparagus grower was quoted as saying, “Well, you know, British workers just won’t do 12 hours a day of back-breaking work.” Well, I do not believe that we should have a food system that relies on anybody doing 12 hours a day of back-breaking work. We need to ensure that there are jobs that a reasonable range of people can do over a reasonable range of their lifetime, and that needs to fit in with people’s capabilities and capacities, and the skills, as the amendment alludes to, very much need to be developed through far more education and training.

I want to reflect also on what the noble Lord, Lord Naseby, just said about mutuals being involved in supplying housing for workers. We also need to look at encouraging, supporting and assisting in the growth of co-operative models of food production and food growing. Your Lordships might be interested in looking at OrganicLea, not very far from where those of you who are in the Chamber are sitting. It is a co-operative growing good, healthy fruit and vegetables and ensuring that its workers are part of a whole team.

I want also to commend the noble Baroness, Lady Jones of Whitchurch, on her reference to mental health. An issue that I have been raising elsewhere in your Lordships’ House is the epidemic and truly awful levels of mental ill-health in the building industry. We have been talking a lot about key workers recently; builders and farm workers are clearly key workers. They need to have good, stable, secure jobs that can last through a working life, that fit within their practical capabilities and that give them a decent life and decent wages. So I commend both amendments to the Committee.

[Viscount Trenchard (Con)]

My Lords, I acknowledge the expertise in this area of the noble Baroness, Lady Jones, but am sceptical that her Amendment 218 would achieve the purposes she envisages and believe that it is unnecessary and indeed could be counterproductive. As my noble friend Lord Naseby mentioned, we already have excellent agricultural colleges, such as Shuttleworth and Cirencester.

The amendment represents an attempt to interfere with the supply of workers in ways which the market may or may not support. It presumes that there is likely to remain a shortage of trained agricultural workers. Is it not likely that further mechanisation will reduce the demand for agricultural workers? Is it not also true that much agricultural work does not require much training and is seasonal in nature? I ask the Minister to confirm that our future immigration policy will recognise the need and provide that foreign workers may be admitted to the UK for limited periods to carry out fruit picking and related jobs.