Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the impact on small and medium sized enterprises of delays by insurance companies in settling in full covid-19 related claims that have been upheld by the Financial Ombudsman; and if he will make it his policy to look at providing these businesses with support, including a government backed loan scheme offered via primary lenders and which would give businesses the chance to consolidate their covid related debts and negotiate affordable payment plans.

The Financial Ombudsman Service is an independent body set up to provide arbitration in disputes between customers and financial services firms. Following a consumer's acceptance of an ombudsman's final decision, the decision becomes binding on the firm.

The Financial Conduct Authority’s (FCA) rules require businesses to co-operate with the ombudsman – this includes complying with any decision that the ombudsman may make.

The Government continues to work closely with the FCA to ensure that the rules are being upheld during this crisis and fully supports the regulator in its role.

Under the Government’s Recovery Loan Scheme (RLS), eligible businesses can take out a loan and use part of this facility to refinance their existing loans. Businesses in this situation should speak to lenders about their financing options. Businesses can use any of the accredited RLS lenders to refinance, and not just the lender they have the existing loan with. More information regarding accredited lenders under RLS is available on the British Business Bank’s website.