Asked by: Lord Tyrie (Non-affiliated - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government in each of the past three years how many times (1) OFCOM, (2) OFGEM, (3) the Competition and Markets Authority, and (4) the Financial Reporting Council, have exercised the power to disclose the identity of persons under investigation.
Answered by Lord Johnson of Lainston - Minister of State (Department for Business and Trade)
The subject of OFCOM’s investigations are services rather than individual persons. The details of these investigations are published on OFCOM’s website.
OFGEM also publishes details of its investigations on its website.
The Competition and Markets Authority exercised the power to identify persons under investigation in seven cases in 2021; ten cases in 2022; and in five cases in 2023. In some of these cases multiple parties have been identified.
The Financial Reporting Council has not exercised the power in any of the past three years.
Asked by: Duncan Baker (Conservative - North Norfolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential impact of trends in the number of ATM closures on (a) access to and (b) the depositing of cash.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
Currently, 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. LINK has committed to protect free-to-use ATMs more than one kilometre away from the next nearest free ATM or Post Office, and free access to cash on high streets (where there is a cluster of five or more retailers) that do not have a free-to-use ATM or a Post Office counter within one kilometre.
LINK publishes monthly statistics on its ATM network on its website https://www.link.co.uk/initiatives/financial-inclusion-monthly-report/#:~:text=LINK%20has%20also%20committed%20to,commitment%20can%20be%20found%20here.
However, in recognition 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 recently held a consultation on its proposed regulatory approach: FCA Access to Cash Consultation. The FCA is currently considering feedback and expects to publish its final rules in the third quarter of this year.
Asked by: Justin Madders (Labour - Ellesmere Port and Neston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the implications for his policies of the reduction in numbers of credit unions.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
The Government is a strong supporter of credit unions, recognising the vital role they play in local communities throughout the country.
Through the Financial Services and Markets Act 2023, the Government allowed credit unions in Great Britain to offer a wider range of products and services, diversifying their income streams and enhancing their role in financial inclusion.
According to the latest data from the PRA, credit union membership in Great Britain has increased for the fifth consecutive quarter, reaching a record level of over 1.5 million. Their total assets have also increased to over £2.67 billion.
The Government continues to engage with the credit union sector to assess how they can best be supported moving forward.
Asked by: Rachel Maclean (Conservative - Redditch)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Levelling Up, Housing and Communities, if he will make an assessment of the potential impact of capping existing ground rents (a) to a peppercorn, (b) to £250 per annum and (c) in another way on the operation of (i) pension funds and (ii) financial markets.
Answered by Lee Rowley - Minister of State (Minister for Housing)
The Government’s consultation on restricting ground rents for existing leases ran from 8 December to 17 January.
Whilst we will publish a full response shortly, we can confirm that the general response to the consultation has confirmed that ground rents represent, at most, a small percentage of total UK pension assets. In addition, no substantive evidence has been provided within the consultation that suggests that there is a systemic risk to the operation of pension funds or the financial markets. Even the sector itself, in its so-called “option 6” alternative, has recognised the necessity of reform in this policy area.
Having concluded the consultation and reviewed the responses provided, we intend to set out the future proposed approach in this policy area shortly.
Asked by: Rachel Maclean (Conservative - Redditch)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Levelling Up, Housing and Communities, what estimate he has made of the potential impact of capping ground rent to (a) a peppercorn and (b) £250 on the returns of UK pension funds.
Answered by Lee Rowley - Minister of State (Minister for Housing)
The Government’s consultation on restricting ground rents for existing leases ran from 8 December to 17 January.
Whilst we will publish a full response shortly, we can confirm that the general response to the consultation has confirmed that ground rents represent, at most, a small percentage of total UK pension assets. In addition, no substantive evidence has been provided within the consultation that suggests that there is a systemic risk to the operation of pension funds or the financial markets. Even the sector itself, in its so-called “option 6” alternative, has recognised the necessity of reform in this policy area.
Having concluded the consultation and reviewed the responses provided, we intend to set out the future proposed approach in this policy area shortly.
Asked by: Lord Jackson of Peterborough (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what discussions they have with the Competition and Markets Authority on the recent increases in car insurance premiums and access to car insurance for motorists on lower incomes.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
Treasury Ministers and officials have regular meetings with a wide variety of organisations in the public and private sectors, including the financial services regulators, on an ongoing basis.
The Government does not prescribe the terms, conditions or price that insurance companies set when offering insurance. Insurers make commercial decisions about the pricing of insurance following their assessment of the relevant risks. The Government does not intervene in these decisions as this could damage competition in the market.
The Financial Conduct Authority (FCA) is the independent regulator responsible for supervising the insurance industry. Alongside the Competition and Markets Authority, the FCA can enforce against breaches of competition law for the provision of financial services.
The FCA also requires firms to ensure their products offer fair value (i.e. if the price a consumer pays for a product or service is reasonable compared to the overall benefits they can expect to receive). The FCA has been clear that it will be monitoring firms to ensure they are providing products that are fair value, and, where necessary, it will take action.
Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the Department for Education:
To ask the Secretary of State for Education, what steps she is taking to ensure that funding allocated to universities enables institutions to mitigate losses incurred from the decline in international student recruitment.
Answered by Luke Hall - Minister of State (Education)
The department considers it important that it has a sustainable system to support students and support higher education (HE), that is responsive to the needs of labour markets and the wider economy and is fair to students and fair to taxpayers. In 2021/22, the total income of the HE sector in England was £40.8 billion, which was up from £28 billion in 2014/15. Of the £40.8 billion, approximately £16 billion was provided by government. This is on top of the department’s £1.3 billion capital investment for teaching and research over the current Spending Review period.
Through the Strategic Priorities Grant, the department is investing hundreds of millions of pounds in additional funding over the three-year period from the 2022/23 to 2024/25 financial years to support high-quality teaching and facilities. This includes the largest increase in government funding for the HE sector to support students and teaching in over a decade. In addition, the department has provided £450 million of capital funding across the 2022/23 to 2024/25 financial years to allow HE providers to invest in a greater range of projects that will deliver better facilities for students.
With our world-class universities, the government fully expects the UK to continue to be a major destination of choice for international students. The department will continue to work closely with the Home Office on the student visa system and on how it impacts international students.
Longer-term funding plans for the HE sector will be set out at the next multi-year Spending Review, in line with the approach to long-term public spending commitments across government.
Asked by: Thérèse Coffey (Conservative - Suffolk Coastal)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment his Department has made of the adequacy of the availability of cash withdrawal facilities in Suffolk.
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 by those 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, on both a national and local basis. The FCA expects to finalise its regulatory rules in the third quarter of this year.
The most recent analysis undertaken by the FCA on cash access coverage across the UK found that in Q1 2023, over 99% of people in urban areas are within 1 mile of a cash access point offering withdrawals, and over 98% of people in rural areas are within 3 miles of a cash access point offering withdrawals. Further details of this analysis, including a breakdown of cash access coverage by Local Authority District is available on the FCA website: Access to cash coverage in the UK 2023 Q1
Asked by: Matt Hancock (Conservative - West Suffolk)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what the pay ranges at each grade are for Competition and Markets Authority staff based (a) in and (b) outside London.
Answered by Kevin Hollinrake - Minister of State (Department for Business and Trade)
Current pay at the Competition and Markets Authority ranges from a minimum of £25,300 to a maximum of £27,900 for Administrative Officers, the lowest pay grade, to a minimum of £127,000 to a maximum of £208,100 for Senior Civil Service Pay Band 3, which is Director General level and the most senior grade. My officials will share a detailed breakdown of pay ranges separately.
In relation to pay in and outside of London, the CMA does not differentiate pay based on location. Pay and funding are the responsibility of HM Treasury, who are the financial sponsors of the CMA.
Pay Bands
Administrative Officer to Grade 6 – effective from 1 September 2023
Grade | Pay minima | Pay mid-point | Pay maxima |
AO | £25,300 | £26,600 | £27,900 |
EO | £29,550 | £31,825 | £34,100 |
HEO | £36,550 | £40,975 | £45,400 |
SEO | £46,000 | £49,950 | £53,900 |
G7 | £57,100 | £64,650 | £72,200 |
G7 (Competition Specialist) | £59,100 | £66,750 | £74,400 |
G6 | £71,300 | £77,550 | £83,800 |
G6 (Competition Specialist) | £78,600 | £84,450 | £90,300 |
Senior Civil Service – effective from 1 April 2023
Grade | Specialism | Pay minimum | Pay maximum |
Deputy Director | Non-Competition Specialist: | £75,000 | £117,800 |
(SCS Pay Band 1) | Competition Specialist: | £96,923 | £117,800 |
Director | Non-Competition Specialist: | £97,000 | £162,500 |
(SCS Pay Band 2) | Competition Specialist: | £128,966 | £162,500 |
Director General | All roles: | £127,000 | £208,100 |
(SCS Pay Band 3) |
Asked by: Chris Law (Scottish National Party - Dundee West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what criteria the Financial Conduct Authority uses to decide what markets to (a) monitor and (b) intervene in.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
The Financial Services and Markets Act 2000 establishes the framework for financial services regulation. It provides for the Treasury and Parliament, through legislation, to determine which activities, products and markets are regulated and fall within the remit of the Financial Conduct Authority (FCA). The Financial Services and Markets Act 2000 also gives the FCA a set of statutory objectives and the appropriate regulatory tools and powers to pursue those objectives.
The question of how the FCA monitors and intervenes in the markets it regulates, in order to fulfil its statutory functions, is a matter for the FCA, which is operationally independent from Government. The FCA will respond to the Honourable Member by letter on this matter, and a copy of the letter will be placed in the Library of the House of Commons.