Written questions by Thomas.

What further steps she will take to make the cost of business loans more transparent.

The Government receives representations from a range of stakeholders about matters across financial services and the economy. Disputes are a matter for the Financial Ombudsman Service rather than the Government. I would refer my honourable friend to the answers I provided on the topic of SME lending on 24 November, 26 November and 27 November, including in relation to the rates for short-term lending to small and medium sized businesses in the UK. As set out in my previous response, interest rates, including those offered by individual providers, are a commercial matter decided by the lender concerned, reflecting the base rate, the risk of the applicant, and a margin to make the loan commercially viable given the cost of underwriting and broader funding costs. The Government does not intervene in commercial offerings, and SMEs should shop around to find the product that best suits their needs when choosing finance, which in turn helps drive competition, improves choice, and may support pricing.

If she will make an assessment of the potential impact of proposed changes to EU customs arrangements on UK businesses.

On 17 May 2023, the European Commission proposed a revision of the Union Customs Code. The proposal is still subject to EU internal procedures; therefore, we cannot comment on the final proposal. However, we are following these suggested reforms closely, and continue to engage with the EU and business, particularly on potential impacts for UK businesses

How many complaints the a) Financial Ombudsman Service, b) Financial Conduct Authority and c) Prudential Regulation Authority received about i) the cost of loans to SMEs, ii) debt recovery behaviour by those offering to lend to SMEs and iii) fees charged by lenders when lending to SMEs in each of the last three years for which data is available.

I refer my honourable friend to the answers I provided on the topic of SME lending on 23 October. Complaints are the remit of the Financial Ombudsman Service (FOS), which publishes regular data on complaint trends. In its latest quarterly report, it noted that complaints about unaffordable lending had halved, though this figure does not distinguish between household and business credit, and complaint patterns can fluctuate each quarter. Over the past five years, credit card complaints have consistently ranked among the top five issues, while business lending has generated relatively few FOS disputes compared to personal and household credit.The Bank of England’s ‘Bankstats’ data tracks business and household credit, including average interest rates for SMEs. As of 31 August 2025, the average rate for new SME loans from UK banks is 6.35%, reflecting a decline in line with base rate reductions.

If she will meet with representatives of the UK chemical industry to discuss an estimate of the potential cost of being out of the Single Market.

Government Ministers regularly meet with businesses and business representation organisations from a range of sectors, including the chemical sector. They remain open to further engagement with the sector including on ways to bolster growth, trade and investment.

How many complaints her Department has received on the cost of loans offered by IWOCA to small and medium sized businesses.

I refer my honourable friend to the answers I provided on the topic of SME lending on 23 October, and more recently in relation to the rate of short-term lending to small and medium sized businesses in the UK. Interest rates, including those offered by individual providers, are a commercial matter decided by the lender concerned, reflecting the base rate, the risk of the applicant, and a margin to make the loan commercially viable given the cost of underwriting and broader funding costs. The Government does not intervene in commercial decisions, and SMEs should should shop around to find the product that best suits their needs when choosing finance, which in turn helps drives competition, improves choice, and may support pricing. More widely, case complaints are a matter for the Financial Ombudsman Service rather than the Government, where the Treasury receives correspondence across a wide variety of subjects including financial services. While we are not able to measure the number of complaints the department receives in relation to high-cost credit for business loans (or in relation to an individual provider), the volume of correspondence on the cost of credit in relation to business loans, is generally low.

Whether she has had discussions with the Secretary of State for Business and Trade on the cost of business loans offered by IWOCA.

I refer my honourable friend to the answers I provided on the topic of SME lending on 23 October, and more recently in relation to the rate of short-term lending to small and medium sized businesses in the UK. Interest rates, including those offered by individual providers, are a commercial matter decided by the lender concerned, reflecting the base rate, the risk of the applicant, and a margin to make the loan commercially viable given the cost of underwriting and broader funding costs. The Government does not intervene in commercial decisions, and SMEs should should shop around to find the product that best suits their needs when choosing finance, which in turn helps drives competition, improves choice, and may support pricing. More widely, case complaints are a matter for the Financial Ombudsman Service rather than the Government, where the Treasury receives correspondence across a wide variety of subjects including financial services. While we are not able to measure the number of complaints the department receives in relation to high-cost credit for business loans (or in relation to an individual provider), the volume of correspondence on the cost of credit in relation to business loans, is generally low.

What information her Department holds on the highest rate of short-term lending to small and medium sized businesses in the UK.

Interest rates are a commercial matter decided by lenders, reflecting the base rate, the risk of the applicant, and a margin to make the loan commercially viable given the cost of underwriting and broader funding costs. Rates vary across the market and even significantly within the SME sector – dependent on the trading history, credit position, security, and other factors of the individual business applicant. The UK also benefits from a broad lending market, enabling a diverse range of finance providers to facilitate access to finance for a wide range of SMEs. SMEs should shop around to find the product that best suits their needs when choosing finance. The Bank of England’s ‘bankstats’ data provides insights into business and household credit, including the effective interest rates for SMEs on new and outstanding loans. The monthly average of UK resident banks’ sterling weighted loans for new advances to SMEs now stands at 6.35%, as of 31st August 2025, a figure that has tracked down as the base rate has fallen.

Whether she plans to update (a) the Consumer Insurance (Disclosure and Representations) Act 2012 and (b) the Insurance Act 2015 to strengthen statutory consumer protections in the insurance market.

On 23 September 2025 Which? made a supercomplaint to the Financial Conduct Authority (FCA) that makes recommendations on relevant matters, including that the FCA and Government should review consumer protection legislation in insurance. The FCA and the Government are considering the issues raised. The FCA will respond to the supercomplaint in due course.

Whether she will conduct a post-legislative review of (a) the Consumer Insurance (Disclosure and Representations) Act 2012 and (b) the Insurance Act 2015.

On 23 September 2025 Which? made a supercomplaint to the Financial Conduct Authority (FCA) that makes recommendations on relevant matters, including that the FCA and Government should review consumer protection legislation in insurance. The FCA and the Government are considering the issues raised. The FCA will respond to the supercomplaint in due course.

Whether credit unions will be allowed to offer Help to Save accounts from 2027.

The Help to Save scheme supports financial resilience for working people on low incomes by encouraging consistent, long-term saving and helping them build a financial buffer to plan and prepare for the future. In April 2025, the government widened the eligibility criteria for the Help to Save scheme to all Universal Credit claimants in work, rather than only those earning above a specified threshold. This expansion means around 550,000 additional people can benefit from the scheme, increasing the eligible population to approximately 3 million. The government recognises that further groups may also benefit from Help to Save. Any future changes would need to be carefully assessed to ensure the scheme continues to be well targeted and deliverable. The government has recently consulted on reforms to the delivery of Help to Save after 2027 and we continue to engage with a range of third-party financial institutions, including credit unions, as part of this process.

If she will ask the Prudential Regulation Authority to ease the rules on credit unions being able to lend to other credit unions.

According to Section 11 of the Credit Unions Act 1979, credit unions are able to lend to other credit unions. Credit unions are regulated by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) in a way that ensures the stability and soundness of the sector. The PRA and FCA are independent regulators and take decisions on the regulation of credit unions in line with their statutory objectives.

Whether she plans to extend eligibility to Help to Save to people of pension age and in receipt of (a) carers allowance, (b) pension credit and (c) housing benefit after 2027.

The Help to Save scheme supports financial resilience for working people on low incomes by encouraging consistent, long-term saving and helping them build a financial buffer to plan and prepare for the future. In April 2025, the government widened the eligibility criteria for the Help to Save scheme to all Universal Credit claimants in work, rather than only those earning above a specified threshold. This expansion means around 550,000 additional people can benefit from the scheme, increasing the eligible population to approximately 3 million. The government recognises that further groups may also benefit from Help to Save. Any future changes would need to be carefully assessed to ensure the scheme continues to be well targeted and deliverable. The government has recently consulted on reforms to the delivery of Help to Save after 2027 and we continue to engage with a range of third-party financial institutions, including credit unions, as part of this process.

Whether she plans to take further steps to reform regulation of the (a) home and (b) travel insurance markets.

The government expects that insurers deliver good outcomes to consumers and firms are required to do so under Financial Conduct Authority (FCA) rules. These rules require firms to ensure their products offer fair value. This means the price paid by consumers must be reasonable compared to the benefits they receive. The FCA monitors firms and has robust powers to act against firms that breach its rules. The government’s Financial Inclusion Strategy, published on 5 November 2025, recognises that insurance has an important part to play in financial resilience and wellbeing, and sets out a range of interventions to improve access. This includes a total signposting initiative which will help underserved consumers find insurance policies which meet their needs. The government also plans to publish the final report of the cross-government Motor Insurance Taskforce in the autumn. As part of the taskforce’s work to understand how the cost of motor insurance impacts on particular groups of customers, the FCA is conducting statistical analysis to evaluate the impacts on different age groups and consumers living in areas with a higher proportion of minority ethnic residents. The FCA will publish its findings later this year.

If she will request that the Financial Conduct Authority assess whether people living in the 244 neighbourhoods experiencing the highest levels of deprivation are paying above average rates for (a) home, (b) car and (c) travel insurance.

The government expects that insurers deliver good outcomes to consumers and firms are required to do so under Financial Conduct Authority (FCA) rules. These rules require firms to ensure their products offer fair value. This means the price paid by consumers must be reasonable compared to the benefits they receive. The FCA monitors firms and has robust powers to act against firms that breach its rules. The government’s Financial Inclusion Strategy, published on 5 November 2025, recognises that insurance has an important part to play in financial resilience and wellbeing, and sets out a range of interventions to improve access. This includes a total signposting initiative which will help underserved consumers find insurance policies which meet their needs. The government also plans to publish the final report of the cross-government Motor Insurance Taskforce in the autumn. As part of the taskforce’s work to understand how the cost of motor insurance impacts on particular groups of customers, the FCA is conducting statistical analysis to evaluate the impacts on different age groups and consumers living in areas with a higher proportion of minority ethnic residents. The FCA will publish its findings later this year.

If she will require banks to (a) publish lending data by postcode and (b) identify the neighbourhoods where the (i) least and (ii) most lending takes place.

The Government has no plans to require banks to publish lending data by postcode or to identify neighbourhoods with the least and most lending. However, as I outlined in my answers to PQs 86597 (5 November) and 77972 (16 October), and as set out in the recently published Financial Inclusion Strategy, the Government is committed to ensuring that access to finance is available for individuals and businesses across the UK and to tackle barriers where these exist. The Strategy presents an ambitious programme of measures to improve access to credit, among them new funding for the credit union sector in England and a small sum lending pilot.

If she will make an assessment of the adequacy of access to affordable credit for (a) people and (b) small businesses in the 100 most deprived communities according to the English indices of multiple deprivation 2025 published by the Ministry of Housing, Communities and Local Government on 30 October 2025.

The Government recognises that credit, when provided responsibly, supports business growth, and can be crucial for people facing unexpected expenses or managing their cash flow. The UK has a diverse landscape for credit provision to individuals and businesses, comprising traditional banks, challenger and specialist banks, and non-bank finance providers such as Community Development Finance Institutions (CDFIs). In 2024, CDFIs and social banks lent £96.7 million to 364 social enterprises, with 67% of this lending directed to the UK’s most disadvantaged areas.The Government recently published its Financial Inclusion Strategy which sets out an ambitious programme of measures to improve financial inclusion and resilience for people across the UK. In recognition of the important role responsible credit can play for consumers, the strategy includes a focus on access to credit, among other priority issues, with the launch of new funding to support the credit union sector in England and a small sum lending pilot.

With reference to the Independent Commission on Neighbourhoods, if she will review the availability of affordable credit in mission critical neighbourhoods.

The Government recognises that credit, when provided responsibly, can be crucial for people facing unexpected expenses or managing their cash flow. The UK has a diverse landscape for credit provision to individuals, comprising traditional banks, challenger and specialist banks, credit unions, and non-bank finance providers. Within this landscape, Community Development Finance Institutions (CDFIs) play an important role in delivering credit to consumers who are underserved by mainstream lenders. In 2024, CDFIs provided £81.8 million in loans to over 130,000 individuals. More than a third of these borrowers in England were based in the North, which contains most of England’s mission critical neighbourhoods as identified by the Independent Commission on Neighbourhoods. Today I have published the Government’s Financial Inclusion Strategy, which includes a focus on how to improve access to affordable credit. The Strategy outlines measures to support the community finance sector, including encouraging partnerships between the sector and mainstream firms. It was developed in collaboration with a range of consumer and industry representatives and the Government will continue to work closely with stakeholders to deliver on the interventions.

If she will take legislative steps to reform the Bank Referral Scheme to ensure that SMEs are referred to the (a) most appropriate and (b) best value funding option.

I refer the Honourable Member to the answer I gave on 28 October to PQ 84135.

Pursuant to the Answer of 23 October 2025 to Question 82947 on Banks and Community Development Finance Institutions, what assessment she has made of the potential implications for her policies of the reasons for which (a) HSBC, (b) Santander and (c) Barclays have not chosen to support work between banks and Community Development Finance Institutions to support the provision of affordable credit in the areas of highest deprivation.

As outlined in my previous response, the Government recognises the vital role Community Development Finance Institutions (CDFIs) play in providing affordable credit to underserved consumers and businesses. However I cannot comment on how individual banks decide to approach provision of affordable credit. I am very grateful for the engagement by a range of banks and CDFIs in contributing to the upcoming Financial Inclusion Strategy, which includes a focus on access to affordable credit and will seek to ensure people have access to useful products and services for their needs.

Pursuant to the Answer of 23 October 2025 to Question 82944 on Credit Unions, if she will publish the responses to the call for evidence.

The government is committed to exploring legislative reform to the credit union common bond to ensure it remains fit for purpose. Responses to the call for evidence are currently being considered, and the government will provide an update on this work in due course.