John Glen: In January 2019, the Government established the Money and Pensions Service (MaPS), merging three former organisations (the Money Advice Service, The Pensions Advisory Service, PensionWise) to provide free-to-use financial guidance and offer more holistic support to customers. In 2020, MaPS published the UK Strategy for Financial Wellbeing which sets out five national goals to improve the...
John Glen: The requested statistics on protected Child Trust Funds can only be made available at a disproportionate cost.
John Glen: The Government has made no recent assessment in relation to the effect of increasing the probate limit. In most circumstances the provision of a bank’s services, including the administration around bereavement, are a commercial decision for the bank. The Government does not intervene in these decisions. The treatment of customers by UK banks and building societies which are regulated by...
John Glen: The Government is committed to ensuring financial services consumers are appropriately protected. In accordance with the requirements set out in the Financial Services Act 2021, the Financial Conduct Authority (FCA) published a consultation on 14 May 2021 proposing a new ‘Consumer Duty’. The Consumer Duty seeks to clarify and raise expectations for the standard of care that should be...
John Glen: Following the Financial Conduct Authority's (FCA) Mortgage Market Study, an industry voluntary agreement was enacted to help borrowers on reversion rates who are up to date with payments but don't meet the affordability criteria required to switch to a new deal. This means that participating lenders will offer eligible borrowers the ability to switch to an alternative product. The...
John Glen: The Government recognises the value of co-operatives. It is clear they offer a different way of running a business, supporting the needs of their members and their local communities. HMT does not hold any data regarding the amount spent by local authorities in England on helping to set up new business co-operatives. Local authorities in England have significant freedoms to choose what...
John Glen: CPI inflation in August was 3.2% having risen from low levels last year. The Bank of England expects the increase in inflation to be temporary, with inflation returning to its 2% target level through 2022 and 2023. Since the operationally independent Bank of England took on responsibility for inflation, it has averaged around the 2% target. The Government remains committed to price...
John Glen: HMRC is responsible for registering pension schemes where they wish to benefit from the tax reliefs available to pensions. As a result of pension tax simplification, pension scheme registration was moved to a new online digital system in 2006. As part of a wider government response to concerns surrounding pension scams, in 2014 legislation was introduced to enable HMRC to refuse...
John Glen: As a major global financial centre, a key component of the UK’s economic strength and prosperity is our openness to investment and trade. However, this quality also makes the UK economy vulnerable to illicit finance activities, including proliferation financing. Despite robust controls in place in the UK to tackle proliferation financing activity, actors involved in proliferation financing...
John Glen: In my role as Economic Secretary, I have been a champion of the mutuals sector. It is clear to me that mutuals bring something different to other forms of running a business, with their clear focus on delivering the services their members and communities need. The Government has sought to improve the business environment for co-operatives and mutuals. The Co-operative and Community Benefit...
John Glen: The Government recognises that Evergrande’s financial situation, given the size of its outstanding debt, raises a number of global and domestic concerns. That is why we, alongside the UK’s independent financial authorities – the FCA, PRA and Bank of England are closely monitoring the situation. Since 2008 there has been a concerted international effort to strengthen the global...
John Glen: Low and stable inflation is an essential pre-requisite for economic growth, as it provides certainty for households and businesses and helps them make day-to-day economic decisions. The Bank of England’s Monetary Policy Committee (MPC) has the primary objective, set out in law, of maintaining price stability through its use of monetary policy. The Chancellor reaffirmed the remit for the...
John Glen: In the financial year 2020-21 there were 17 payments made to the Government’s Donations and Bequests Account in respect of the National Debt and the total value of those payments was £565,348.96.
John Glen: The Government is committed to legislating to protect access to cash and ensuring that the UK’s cash infrastructure is sustainable in the longer term. On 1 July, the Government published a consultation on access to cash, setting out proposals for new laws to make sure people only need to travel reasonable distances to pay in or take out cash. These measures build on legislative changes by...
John Glen: The decisions about what products are offered and to whom remain commercial decisions for banks and building societies. Similarly, decisions concerning the pricing of products, including account charges, are also commercial decisions for these institutions. Regulating on this issue could put additional costs on lenders that could ultimately lead to higher costs for customers. Therefore, while...
John Glen: HM Treasury analysis published alongside Budget 2021 has shown that policy interventions in response to COVID-19 have, on average, supported the poorest working households most as a proportion of pre-pandemic income. Analysis published at Budget 2021 also shows that in 2021-22 (even when excluding spending in response to COVID-19) tax, welfare and spending decisions made since Spending...
John Glen: The assessment and approval of the proposed sale and demutualisation of Liverpool Victoria is an ongoing and independent process, overseen and scrutinised by the financial services regulators, and subject to approval by the Courts. Assessing the impact on the market of the demutualisation of LV= is a matter for the Financial Conduct Authority. Their assessment will include, among other...
John Glen: The Government welcomes the efforts to establish regional mutual banks and recognises the importance of diversity in the banking system. Officials have been engaging with prospective mutual banks over their efforts to raise capital and look forward to further discussions. The British Business Bank is already delivering the Regional Angels Programme, a £100m scheme which seeks to increase...
John Glen: The "SME supporting factor”, allows firms to apply a discount (ranging between 15% and 24%) to risk weightings for qualifying exposures to SMEs. This measure was introduced by the EU and deviates from internationally agreed Basel standards. The recent Financial Services Act 2021, passed in May, delegated responsibility for the implementation of capital requirements relating to the...
John Glen: Monetary policy is the responsibility of the independent Monetary Policy Committee (MPC) of the Bank of England and this includes decisions on Bank Rate and quantitative easing. The separation of fiscal and monetary policy is a key feature of the UK’s economic framework, and essential for the effective delivery of monetary policy, so the Government does not comment on the conduct or...