Written questions by MacDonald.

What discussions her Department has had with stakeholders in the banking sector on the use of a first school as an (a) online and (b) telephone security question.

Strong Customer Authentication (SCA) in the Payment Services Regulations 2017 sets out the requirements which firms must follow when customers are accessing their payment accounts online, including the use of two-factor authentication to verify a customer’s identity. However, the specific questions firms should use to authenticate a customer’s identity are not prescribed, which is a matter for individual firms. Therefore, the Government has not had discussions with banking stakeholders on the specific uses of first school attended, mother’s maiden name, pet’s name or birthplace as online banking or telephone security questions.

What discussions her Department has had with stakeholders in the banking sector on the use of a birthplace as an (a) online and (b) telephone security question.

Strong Customer Authentication (SCA) in the Payment Services Regulations 2017 sets out the requirements which firms must follow when customers are accessing their payment accounts online, including the use of two-factor authentication to verify a customer’s identity. However, the specific questions firms should use to authenticate a customer’s identity are not prescribed, which is a matter for individual firms. Therefore, the Government has not had discussions with banking stakeholders on the specific uses of first school attended, mother’s maiden name, pet’s name or birthplace as online banking or telephone security questions.

What discussions her Department has had with stakeholders in the banking sector on the use of a pet’s name as an (a) online and (b) telephone security question.

Strong Customer Authentication (SCA) in the Payment Services Regulations 2017 sets out the requirements which firms must follow when customers are accessing their payment accounts online, including the use of two-factor authentication to verify a customer’s identity. However, the specific questions firms should use to authenticate a customer’s identity are not prescribed, which is a matter for individual firms. Therefore, the Government has not had discussions with banking stakeholders on the specific uses of first school attended, mother’s maiden name, pet’s name or birthplace as online banking or telephone security questions.

What recent assessment she has made of the potential merits of requiring the Bank of England to pay interest on its reserves to commercial banks.

The Bank of England has operational independence from the government to carry out its statutory responsibilities for monetary policy and financial stability. Monetary policy, including quantitative easing, is the responsibility of the independent Monetary Policy Committee at the Bank of England. There are no plans to change the way reserves are remunerated at the Bank of England. The government continues to support the Bank to bring inflation in line with its target, including by managing the public finances responsibly.

If she will make an assessment of the potential fiscal impact of exempting the state pension from income tax.

The Government is committed to making sure older people can live with the dignity and respect they deserve in retirement. The State Pension is the foundation of the support available to them. Over the course of this Parliament, the yearly amount of the full new State Pension is currently projected to go up by around £1,900 based on the Office for Budget Responsibility's latest forecast. The Government is also committed to keeping people’s taxes as low as possible while ensuring fiscal responsibility, and so, at our first Budget, we decided not to extend the freeze on personal tax thresholds.

What assessment her Department has made of the potential impact of the personal allowance remaining below the value of the new state pension from April 2026 on pensioners.

The Government is committed to making sure older people can live with the dignity and respect they deserve in retirement. The State Pension is the foundation of the support available to them. Over the course of this Parliament, the yearly amount of the full new State Pension is currently projected to go up by around £1,900 based on the Office for Budget Responsibility's latest forecast. The Government is also committed to keeping people’s taxes as low as possible while ensuring fiscal responsibility, and so, at our first Budget, we decided not to extend the freeze on personal tax thresholds.

If she will make an assessment of the potential impact of (a) recent changes to tax rates applied to betting operators on levels of betting activity and (b) trends in the level of betting activity on revenues to the Exchequer.

Gambling Duties raised £3.6 billion in revenue in 2024-25, an increase of 7% (£227 million) compared to 2023-24.No changes have been made to the gambling duty rates applied to betting operators in this Parliament.

What steps her Department is taking to protect HMRC-held personal data from unauthorised access.

HMRC have strict security standards, and have appropriate technical, physical and managerial procedures in place to safeguard and secure personal information. HMRC limit access to personal information to those persons, or agents who have a business or legal need to do so. For customer-facing services, this includes identity checking procedures and access controls, such as voice biometrics and multi-factor authentication. Fraudsters use the HMRC brand to target individuals with fake correspondence, phishing emails, text messages and telephone calls. We publish phishing and scams guidance on GOV.UK, showing how to recognise scams, report issues and stay safe online.

Whether she has had recent discussions with the Secretary of State for Education on the potential fiscal implications of ending Strategic Priorities Grant funding for journalism courses.

My department regularly discusses Strategic Priorities Grant funding and its fiscal implications with the Department for Education. As a result of the challenging fiscal context that we inherited, we are prioritising support for high-cost subjects that are essential to delivery of our industrial strategy – such as science, engineering and medicine – and core funding to support access to higher education for disadvantaged groups. It is important that the targeted funding allocated through the Strategic Priorities Grant supports provision of subjects that have higher costs of delivery and the key sectors set out in the Industrial Strategy.

Whether her Department has made an assessment of the potential merits of removing the £250 fee for making claims to the Financial Ombudsman Service.

The Financial Ombudsman Service (FOS) provides a free service for consumers and small businesses to resolve disputes with their financial services providers.The FOS is independent from the government and is funded entirely through a combination of levies and case fees paid by financial services firms within the FOS’s jurisdiction and by professional representatives. Financial services firms are charged a fee of £650 per case. As of 1 April 2025, professional representatives who bring a case to the FOS on behalf of complainants may bring 10 cases a year for free, after which they are charged a fee of £250 per case and receive a £175 refund if the case is found in favour of the consumer they represent. No fee is charged to the consumer.The FOS is responsible for determining exactly who it charges and the level of any fees, within its legislative framework which is set by Parliament. The FOS consults annually on its proposed Plans and Budget for the following year, including the level of its case fees.On 25 November 2024, Parliament approved a Statutory Instrument allowing the FOS to charge fees to professional representatives bringing complaints on behalf of consumers. The government considers that introducing a fee for professional representatives when they bring cases to the FOS will help to ensure that the FOS can focus on promptly resolving consumer complaints and reduce the impact of spurious complaints on financial services firms. The new charges were introduced by the FOS following extensive consultation.

What steps she is taking to ensure that motorists are aware of their rights in relation to mis-sold car finance agreements involving discretionary commission arrangements.

The government notes that this matter is currently being considered by the Supreme Court and a judgment is expected to be handed down in due course. The Financial Conduct Authority has confirmed that subject to the Supreme Court outcome, if consumers are found to have lost out from widespread failings by motor finance firms they are likely to set up a consumer redress scheme. On June 5, they published a statement setting out the key considerations that will influence the design of any redress scheme. The Financial Conduct Authority will set out their next steps within 6 weeks of the judgment.

What steps she is taking to assist low-income families with living costs in Inverness, Skye and West Ross-shire constituency.

The Plan for Change committed to improving living standards in every part of the United Kingdom. Helping people into good work and financial independence is at the heart of our approach to supporting people on the lowest incomes. This is why we increased the National Living Wage by 6.7%, are tackling poor job security and working conditions through our plan to Make Work Pay, and are investing an additional £1 billion by 2029-30 in employment, health and skills support in the Pathways to Work Green Paper. Beyond this, the government has introduced a Fair Repayment Rate which lowers the cap on deductions in Universal Credit from April 2025, benefitting 1.2 million households by an average of £420 a year. The Warm Home Discount is also being expanded to every billpayer on means-tested benefits, meaning 2.7 million extra households will receive £150 off their energy bills next winter. Moreover, the Child Poverty Taskforce is working with the Devolved Governments to develop a comprehensive Child Poverty Strategy, which will deliver for children in England, Scotland, Wales and Northern Ireland.

What recent assessment her Department has made of the potential impact of the cost of living on households in Inverness, Skye and West Ross-shire constituency.

The Government is taking a comprehensive approach in response to increasing costs: supporting those in immediate need while addressing the structural changes necessary to fix the country's foundations. The Plan for Change outlines key milestones, including raising living standards in every part of the United Kingdom to put more money back in people’s pockets. In the latest data, living standards (as measured by real household disposable income per capita) are already growing at their fastest quarterly rate in two years. The Government has set out the next steps in delivering our approach for regional growth, spreading growth across the country through investment and reform. This will benefit people across the country, including in the Inverness, Skye and West Ross-shire constituency.

What discussions he has had with the Chancellor of the Exchequer on the potential merits of reducing the level of VAT charged for the supply of electricity at electric vehicle charging points.

The supply of energy for domestic use, including domestic EV charging, attracts the reduced rate of VAT. (5 per cent). Public EV charging is subject to the standard rate of VAT (20 per cent). This matches the VAT treatment of petrol and diesel, as well as all non-domestic electricity. Whilst the relief for domestic energy was not designed for charging EVs at home, it applies for all uses of domestic energy, as it is not easy for energy companies to distinguish between electricity used to charge an EV and electricity used for general domestic purposes. VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Exceptions to the standard rate have always been limited and balanced against affordability considerations.

What steps her Department is taking to ensure that UK banks do not apply blanket restrictions to cryptoasset businesses.

The Government is aware that cryptoasset firms are facing challenges associated with access to banking services, and it is engaged with the sector on these matters. Whilst the Government recognises that such decisions are commercial in nature, we also expect business to be treated fairly. That is why the Government has already taken action in this space, including laying legislation to enhance relevant protections in cases where a business has their bank account terminated by their provider. The Government is also currently finalising legislation to create a financial services regulatory regime for cryptoassets in the UK. Under this regime, firms will need to be licensed by the FCA to provide relevant cryptoasset services in or to the UK, and the Government would not expect such licensed firms to be subject to restrictions by banking services providers simply because of the sector they belong to.

What recent discussions she has had with representatives of (a) the cryptoasset industry and (b) UK banks on improving access to basic banking services for legitimate blockchain and digital asset firms.

The Government is aware that cryptoasset firms are facing challenges associated with access to banking services, and it is engaged with the sector on these matters. Whilst the Government recognises that such decisions are commercial in nature, we also expect business to be treated fairly. That is why the Government has already taken action in this space, including laying legislation to enhance relevant protections in cases where a business has their bank account terminated by their provider. The Government is also currently finalising legislation to create a financial services regulatory regime for cryptoassets in the UK. Under this regime, firms will need to be licensed by the FCA to provide relevant cryptoasset services in or to the UK, and the Government would not expect such licensed firms to be subject to restrictions by banking services providers simply because of the sector they belong to.

Pursuant to the Answer of 17 June 2025 to Question 60696 on the Loan Charge, which loan charge campaigner recommended Mr Ray McCann to lead the independent review.

Prior to the 2024 general election, the Chancellor committed to an independent review of the Loan Charge. Following the election, I began pursuing this matter on her behalf, and met with campaigners, tax experts, and some of those affected. Mr McCann was suggested as a potential reviewer at a meeting on 23 July 2024, to which I invited stakeholders who have campaigned on the issue. The meeting was attended by the hon. Member for Mid Buckinghamshire (Co-Chair of the Loan Charge and Taxpayer Fairness All-Party Parliamentary Group), Keith Gordon (a tax Barrister), Sarah Gabbai (a tax lawyer) and representatives from the Loan Charge Action Group.

Whether her Department has made an assessment of the adequacy of the independence of the Independent Review of the Loan Charge Scandal.

The Government has commissioned an independent review of the Loan Charge to help bring the matter to a close for those affected whilst ensuring fairness for all taxpayers. The independent review is being led by Ray McCann, a highly respected figure in the tax world whose name was suggested by one of the Loan Charge campaigners. Mr McCann is being supported by a team of officials who have not previously worked on this policy area and are based outside of the Treasury and HMRC. The reviewer will have the final say on what is included in his report and is responsible for deciding how to conduct the review.

What assessment his Department has made of the potential impact of removing VAT exemptions for private (a) first-class and (b) business-class flights on Aviation Industry’s Carbon Footprint.

The principal tax on the aviation sector is Air Passenger Duty (APD), which is expected to raise £4.7 billion in 2025-26. APD aims to ensure that airlines make a fair contribution to the public finances. The Government has put in place a wide range of measures to support the decarbonisation of the aviation sector, including the Emissions Trading Scheme (ETS), support for sustainable aviation fuel (SAF), and development of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) through the International Civil Aviation Organization.

Whether her Department has made an assessment of the merits of exempting tips paid by card from National Insurance contributions.

The method of payment of a tip does not determine whether National Insurance is due. National Insurance is not due on tips paid directly to the worker, or where the employer has no influence in the allocation of the tips. If an employer is involved in deciding how tips are shared out, then the payment may be liable for National Insurance. If it is not a voluntary payment, then National Insurance is due.