Asked by: Helen Morgan (Liberal Democrat - North Shropshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of valid Covid-19 business interruption claims becoming time-barred in March 2026 on the insurance sector.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Financial Conduct Authority (FCA), as the independent regulator for financial services, sets the conduct standards required of insurance firms. This includes rules requiring insurers to handle claims fairly and promptly.
The Supreme Court published its final judgment in the FCA’s Business Interruption Insurance test case in 2021. At the time of the judgment, the FCA set out its expectation that insurers should communicate to all impacted policyholders what the judgment meant for their claim and should move quickly to resolve claims as determined by the judgment.
The FCA court case did not cover all potential issues with business interruption policies. The FCA has been clear that, in the event of further court rulings, insurers will need to consider carefully how the rulings impact claims they have already decided.
The FCA considered the issue of new ‘stop the clock’ guidance as part of its response to Stewarts LLP on 23 January. The FCA was clear that insurers must look at claims that have already been made in light of any new legal rulings to see if any action must be taken. Where no claim has been submitted, it is not clear why an insurer would not be able to rely on relevant time limits set out in the insurance policy, subject to the particular circumstances of each claim and compliance with the FCA’s broader rules.
The FCA is continuing to supervise firms to ensure they are meeting their expectations and has robust powers to take action where necessary.
Asked by: Helen Morgan (Liberal Democrat - North Shropshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps her Department is taking to ensure that SMEs not party to (a) NFU Mutual and (b) Bath Racecourse litigation are not permanently deprived of the right to an indemnity due to the expiration of limitation periods.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Financial Conduct Authority (FCA), as the independent regulator for financial services, sets the conduct standards required of insurance firms. This includes rules requiring insurers to handle claims fairly and promptly.
The Supreme Court published its final judgment in the FCA’s Business Interruption Insurance test case in 2021. At the time of the judgment, the FCA set out its expectation that insurers should communicate to all impacted policyholders what the judgment meant for their claim and should move quickly to resolve claims as determined by the judgment.
The FCA court case did not cover all potential issues with business interruption policies. The FCA has been clear that, in the event of further court rulings, insurers will need to consider carefully how the rulings impact claims they have already decided.
The FCA considered the issue of new ‘stop the clock’ guidance as part of its response to Stewarts LLP on 23 January. The FCA was clear that insurers must look at claims that have already been made in light of any new legal rulings to see if any action must be taken. Where no claim has been submitted, it is not clear why an insurer would not be able to rely on relevant time limits set out in the insurance policy, subject to the particular circumstances of each claim and compliance with the FCA’s broader rules.
The FCA is continuing to supervise firms to ensure they are meeting their expectations and has robust powers to take action where necessary.
Asked by: Helen Morgan (Liberal Democrat - North Shropshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with the FCA on stop the clock guidance and related litigation.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Financial Conduct Authority (FCA), as the independent regulator for financial services, sets the conduct standards required of insurance firms. This includes rules requiring insurers to handle claims fairly and promptly.
The Supreme Court published its final judgment in the FCA’s Business Interruption Insurance test case in 2021. At the time of the judgment, the FCA set out its expectation that insurers should communicate to all impacted policyholders what the judgment meant for their claim and should move quickly to resolve claims as determined by the judgment.
The FCA court case did not cover all potential issues with business interruption policies. The FCA has been clear that, in the event of further court rulings, insurers will need to consider carefully how the rulings impact claims they have already decided.
The FCA considered the issue of new ‘stop the clock’ guidance as part of its response to Stewarts LLP on 23 January. The FCA was clear that insurers must look at claims that have already been made in light of any new legal rulings to see if any action must be taken. Where no claim has been submitted, it is not clear why an insurer would not be able to rely on relevant time limits set out in the insurance policy, subject to the particular circumstances of each claim and compliance with the FCA’s broader rules.
The FCA is continuing to supervise firms to ensure they are meeting their expectations and has robust powers to take action where necessary.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the implications for employment law, taxation and consumer protection of workers being paid in stablecoins or other digital assets.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Income Tax, National Insurance Contributions and PAYE rules for non-money earnings apply to stablecoins and other cryptoassets in the same way as other assets. HMRC has set out guidance explaining how tax rules apply to employment earnings in the form of cryptoassets.
As the market for cryptoassets evolves, the Government will continue to keep the tax framework under review.
The Government has also introduced a new financial services regulatory regime for cryptoassets which will raise standards, strengthen consumer protection, and address market abuse.
Asked by: Helen Morgan (Liberal Democrat - North Shropshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps her Department is taking to help ensure transparency in the insurance industry's use of algorithmic and AI pricing models.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The government is determined that insurers should treat customers fairly and firms are required to do so under Financial Conduct Authority (FCA) rules. The FCA 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 make sure they provide products that are fair value, and, where necessary, it has robust powers to take action.
The government believes that the safe and effective adoption of artificial intelligence (AI) in financial services is a major strategic opportunity, with the potential to power growth across the UK.
As set out in the government’s Financial Services Growth and Competitiveness Strategy, it is our ambition to make the UK the world's most technologically advanced global financial sector, leveraging our dual strengths in financial services and AI.
To support the effective and safe use of AI by industry, while protecting consumers and financial stability, the government has appointed Financial Services AI champions, Harriet Rees and Rohit Dhawan. They will focus on helping firms seize the opportunities for AI in a way that supports innovation, maintains trust in UK financial services, and ensures that consumers are appropriately protected.
Asked by: Kevin Hollinrake (Conservative - Thirsk and Malton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the FCA's letter to Stewarts LLPs, dated 23 January 2026, what assessment her Department has made of the level of compliance of insurers with the FCA's expectations to review and revisit Covid Business Interruption claims following post-Test Case court rulings.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Financial Conduct Authority (FCA), as the independent regulator for financial services, sets the conduct standards required of insurance firms. The FCA has made clear its expectation that insurers carefully consider how new legal rulings affect claims they have already decided. It is for the FCA to supervise firms and, if necessary, take action against those that do not comply with its rules. The FCA has robust powers to take action where it deems appropriate.
The FCA’s 23 January letter (available online at: https://www.fca.org.uk/publication/correspondence/fca-response-insurance-open-letter.pdf) stated that the FCA stopped publishing business interruption claims data in March 2023. Questions about data held by the FCA can be addressed directly to the FCA.
Asked by: Kevin Hollinrake (Conservative - Thirsk and Malton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what data the Financial Conduct Authority holds on the number of Covid Business Interruption claims that were reopened or reassessed by insurers following post-Test Case court judgments.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Financial Conduct Authority (FCA), as the independent regulator for financial services, sets the conduct standards required of insurance firms. The FCA has made clear its expectation that insurers carefully consider how new legal rulings affect claims they have already decided. It is for the FCA to supervise firms and, if necessary, take action against those that do not comply with its rules. The FCA has robust powers to take action where it deems appropriate.
The FCA’s 23 January letter (available online at: https://www.fca.org.uk/publication/correspondence/fca-response-insurance-open-letter.pdf) stated that the FCA stopped publishing business interruption claims data in March 2023. Questions about data held by the FCA can be addressed directly to the FCA.
Asked by: James McMurdock (Independent - South Basildon and East Thurrock)
Question to the Department of Health and Social Care:
To ask the Secretary of State for Health and Social Care, what the total monetary value was of NHS costs submitted under the European Health Insurance Card scheme that were not recovered in each of the last three financial years.
Answered by Karin Smyth - Minister of State (Department of Health and Social Care)
Under our agreements with the European Union, European Free Trade Association countries and Switzerland, we make claims to European countries for National Health Service costs incurred by temporary visitors from those countries. Claims are made in arrears and take up to four years before they are fully settled.
The following table shows the position of European Health Insurance Card and Provisional Replacement Certificate claims for the last three financial years as of 31 March 2025:
Financial year | Total value of claims submitted by UK (£000s) | Claims withdrawn by UK (£000s) | Claims paid to the UK (£000s) | Outstanding claims (£000s) |
2022/23 | 10,200 | 402 | 9,174 | 624 |
2023/24 | 12,054 | 233 | 6,570 | 5,251 |
2024/25 | 12,041 | 19 | 863 | 11,159 |
Grand Total | 34,295 | 654 | 16,606 | 17,035 |
These figures come from extracts from the NHS Business Services Authority’s claims processing database used by the Department for accounting purposes. Claims listed as withdrawn or paid have been settled whereas those listed as outstanding are still being agreed. We expect most outstanding claims to be settled in the United Kingdom’s favour.
This data excludes countries where NHS costs for temporary visitors are reimbursed based on a formula agreement which calculates costs from the number of visitors from that country to the UK. Further information is available at the following link:
Asked by: Ben Obese-Jecty (Conservative - Huntingdon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the level of difficulty in obtaining a) home and b) buildings insurance for thatched buildings.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The government has not made a specific assessment regarding the availability of home insurance for thatched buildings.
Insurers make commercial decisions about pricing and the terms of cover they offer based on their assessment of the relevant risks. The UK’s home insurance market is competitive, with many providers offering a variety of insurance products. The Financial Conduct Authority (FCA), the independent regulator of financial services, has a statutory objective to promote competition in the interests of consumers.
The government would always recommend that consumers shop around to find the most suitable cover at the best price. For more specialised risks, such as thatched roofing, it may be helpful for consumers to consult an insurance broker, who will be able to help search the market for specialist providers.
Asked by: Kevin Hollinrake (Conservative - Thirsk and Malton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact unresolved Covid Business Interruption claims expiring without payment on hospitality and leisure businesses.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Financial Conduct Authority (FCA), as the independent regulator for financial services, sets the conduct standards required of insurance firms. This includes rules requiring insurers to handle claims fairly and promptly. The FCA meets with a wide variety of organisations in the course of delivering its statutory objectives. Queries about such engagements can be addressed directly to the FCA.
The Supreme Court published its final judgment in the FCA’s Business Interruption Insurance test case in 2021. At the time of the judgment, the FCA set out its expectation that insurers should communicate to all impacted policyholders what the judgment meant for their claim and should move quickly to resolve claims as determined by the judgment.
The FCA court case did not cover all potential issues with business interruption policies. The FCA has been clear that, in the event of further court rulings, insurers will need to consider carefully how the rulings impact claims they have already decided.
The FCA is continuing to supervise firms to ensure they are meeting their expectations and has robust powers to take action where necessary.