Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, whether his Department has any plans to increase the protections afforded to those who buy gift cards for businesses in cash, in line with those offered through the Chargeback scheme and Consumer Credit Act, in circumstances where businesses enter administration.

The Department asked the Law Commission to examine the protection given to consumer prepayments, including gift vouchers, and consider whether such protections should be strengthened. The Law Commission concluded that gift voucher losses were relatively uncommon, and mandatory regulation on gift vouchers in an insolvency context would be disproportionate. Costs arising to businesses from regulation could also be passed on to consumers.

The Government has worked with the industry and consumer groups to publish better guidance for insolvency practitioners on the information that should be made available to consumers when a retailer becomes insolvent.