Question to the HM Treasury:

To ask the Chancellor of the Exchequer, in circumstances where a business has a successful Business Interruption policy claim met and the loss adjuster deducts from that claim the amount the business had received in furlough payments, whether insurance companies are paying to HM Treasury that deduction; and if it is Government policy that deductions of furlough payments from insurance claims should be paid to the Government.

The Financial Conduct Authority has advised that all deductions from business interruption insurance settlements should be assessed on a case-by-case basis. The individual policy wording generally sets out the basis on which the sum due to the policyholder following an insured event will be calculated. Insurers should therefore calculate claims payments in accordance with the terms and conditions of the relevant policy.

The Government is in continual dialogue with the insurance sector regarding its response to this unprecedented situation, and is encouraging insurers to do all they can to support customers during this difficult period.