Written questions by Smart.

How many individuals with outstanding Loan Charge liabilities are estimated to have debts exceeding £140,000; and of those, how many she expects will be able to settle under the terms announced following the McCann Review.

This Government recognised that concerns were raised about the Loan Charge under the previous government and that some felt strongly that it had not been handled appropriately. The Government therefore commissioned an independent review of the Loan Charge to bring the matter to a close for those affected, ensure fairness for all taxpayers and ensure that appropriate support is in place for those subject to the Loan Charge. Page 19 of the Independent Loan Charge Review report provides estimates of the distribution of outstanding liabilities.https://www.gov.uk/government/publications/independent-review-of-the-loan-charge The Government accepted all but one of the independent review’s recommendations and in some cases is going further, including writing off the first £5,000 from everyone’s liability. Around a third will have their liabilities written off entirely. Most people will see reductions in their liabilities of at least 50%. The new settlement opportunity is open to anyone with outstanding Loan Charge liabilities, including employers. The Government’s response to the review represents a fair and proportionate attempt to provide a route to resolution for those who have not yet been able to settle with HMRC. In turn, this requires those individuals to now come forward and engage with HMRC in good faith.

For what reason the settlement opportunity arising from the McCann Review does not include those whose use of disguised remuneration schemes occurred before 9 December 2010 or after 5 April 2019.

At Budget 2024, the Government announced a new independent review of the loan charge. The purpose of the review was to bring the matter to a close for people who have not settled and paid their loan charge liabilities. The settlement opportunity will only include disguised remuneration scheme use between December 2010 and April 2019 because this is the period during which the loan charge applies.The Government has no plans to apply the review’s recommendations beyond those individuals and employers with outstanding liabilities that were the focus of the review.

Whether officials from HM Treasury who are providing support to the pensions Ombudsman have any involvement in the investigation of complaints concerning pension schemes for which HM Treasury has policy responsibility; and what steps are taken to avoid any actual or perceived conflicts of interest.

No officials from HM Treasury are currently seconded to The Pensions Ombudsman and therefore there is no involvement of HM Treasury officials in its casework.

What assessment she has made of the reasons for differences in the speed of implementation of the McCloud remedy across public service pension schemes; and what steps are being taken to ensure consistent and timely implementation for all affected members.

Scheme managers of the individual public service pension schemes are responsible for ensuring the effective delivery of the McCloud delivery to affected members. This is a complex and wide-ranging exercise. The amount of progress that has been made varies across schemes due to factors including the complexity of cases. I have written to scheme managers to remind them of their responsibilities to implement the remedy as quickly as possible and ensure that scheme members and the Pensions Regulator are kept informed of progress.

When her Department will asses the impact of changes to income tax and national insurance, monitored through information collected from tax receipts, as referenced in Income Tax: Maintaining the Personal Allowance and the basic rate limit for Income Tax, and equivalent National Insurance contributions thresholds until 5 April 2031, published on 26 November 2025.

HMRC monitor the receipts of all taxes monthly through the Tax receipt and National Insurance Contributions publication. Revenue estimates from, and individuals impacted by, maintaining thresholds are set out by the Office for Budget Responsibility in their November 2025 Economic and fiscal outlook, and the detailed forecast table of receipts: Office for Budget Responsibility – Economic and fiscal outlook – November 2025 Office for Budget Responsibility - Economic and fiscal outlook detailed forecast tables: receipts

What steps she is taking to help increase economic growth in Hazel Grove constituency.

There is excellence right across the country and this government is backing it: lifting living standards and putting more money in people’s pockets.  Greater Manchester Combined Authority will receive £2.5bn through the Transport for City Regions Fund and the Greater Manchester Investment Zone is expected to deliver £1.1 bn in private sector investment and 32,000 jobs.

What assessment her Department has made of the potential merits of increasing draft duty relief for (a) consumers, (b) pubs and (c) breweries in Hazel Grove constituency.

The Chancellor’s draught rate cut at Autumn Budget 2024 applied to approximately 60% of the alcoholic drinks sold in pubs. This took a penny of duty off a typical strength pint.Draught beer and cider now pay 13.9% less in duty than their packaged equivalents – an increase of over 50% on the previous draught discount of 9.2%.The Chancellor makes decisions on tax policy at fiscal events. The Government welcomes representations from the beer and pub sectors in advance of the Budget.

What assessment her Department has made of the potential impact of bringing most unused pension funds within the value of a person’s estate for Inheritance Tax purposes on people currently receiving pensions.

I refer the Honourable Member to the answer given to UIN 55099.

What steps she is taking to ensure that banks support innovation in relation to (a) digital assets and (b) other areas.

The government recognises the transformative potential of new technologies in the financial services sector and has made innovation and technology one of the key pillars of its Financial Services Growth and Competitiveness Strategy. The government is committed to enabling and supporting increased digital adoption, as well as other new technologies, that have the potential to increase productivity and open up new products and services. The government will publish this strategy at Mansion House on the 15th July. This is in addition to measures the government has already taken to ensure that banks support innovation, such as the commitment set out in the National Payments Vision to establish a Long-Term Regulatory Framework for Open Banking. This framework will provide the clarity and certainty needed to facilitate further innovation and investment.

What recent estimate her Department has made of the number of homeowners who are unable to switch to a cheaper mortgage due to changes in the (a) lending regulations and (b) policies of their current lender.

According to the Financial Conduct Authority (FCA), the vast majority of borrowers switch within 6 months of the end of an introductory deal. However, the Government understands the challenges facing mortgage borrowers that struggle to switch to new loans. These borrowers are predominantly with closed book mortgage providers. Correspondence from the FCA to the Treasury Select Committee has shown that the number of borrowers with closed book mortgage providers have consistently declined since 2021. There are significant measures in place to protect vulnerable mortgage borrowers across the mortgage market. FCA rules require lenders to engage individually with their customers who are struggling or who are worried about their payments in order to provide tailored support. Closed book lenders must also comply with the FCA’s Consumer Duty, which ensures firms prioritise fair treatment and good outcomes for their customers.

What steps her Department is taking to support people in switching to more affordable mortgage products.

According to the Financial Conduct Authority (FCA), the vast majority of borrowers switch within 6 months of the end of an introductory deal. However, the Government understands the challenges facing mortgage borrowers that struggle to switch to new loans. These borrowers are predominantly with closed book mortgage providers. Correspondence from the FCA to the Treasury Select Committee has shown that the number of borrowers with closed book mortgage providers have consistently declined since 2021. There are significant measures in place to protect vulnerable mortgage borrowers across the mortgage market. FCA rules require lenders to engage individually with their customers who are struggling or who are worried about their payments in order to provide tailored support. Closed book lenders must also comply with the FCA’s Consumer Duty, which ensures firms prioritise fair treatment and good outcomes for their customers.

Whether she has had recent discussions with UK banks on the provision of (a) bank statements and (b) other financial documents in accessible formats for customers with visual impairments.

The Government works closely with the Financial Conduct Authority (FCA), the independent regulator of the UK’s financial services sector, to ensure that all customers get the right support with their financial products and services. FCA guidance highlights the actions firms should take to understand the needs of customers who may be vulnerable, such as those with visual impairments, and to consider these needs appropriately. The guidance sets out that firms should offer multiple channels of communication where possible and includes examples of how firms can put this into practice, such as by providing large print documents and audio options. Additionally, under the Equality Act 2010, banks must make reasonable adjustments to ensure their services are accessible to all.

Whether HMRC plans to improve its (a) telephone and (b) online chat services to ensure that people can receive human assistance when digital systems fail to provide information.

Once they have submitted an A1 certificate renewal or other time-sensitive application, customers can use the “check when you can expect a reply from HMRC” tool which is available on gov.uk to confirm when they are likely to receive a response. Customers can contact HMRC via telephony or web chat for urgent A1 applications. HMRC advisors will then decide if the case needs urgent escalation and will take it forward as appropriate. These cases relate to customers who need a certificate to work in another country. HMRC are always seeking to improve their day to day performance including their telephony and webchat service. HMRC received extra funding last year to recruit more customer service advisers and, under the current Government, are focused on transforming services to better support taxpayers.

What recent assessment she has made of the adequacy of the accessibility of HMRC's communication channels for people seeking urgent updates on (a) A1 certificate renewals and (b) other time-sensitive applications.

Once they have submitted an A1 certificate renewal or other time-sensitive application, customers can use the “check when you can expect a reply from HMRC” tool which is available on gov.uk to confirm when they are likely to receive a response. Customers can contact HMRC via telephony or web chat for urgent A1 applications. HMRC advisors will then decide if the case needs urgent escalation and will take it forward as appropriate. These cases relate to customers who need a certificate to work in another country. HMRC are always seeking to improve their day to day performance including their telephony and webchat service. HMRC received extra funding last year to recruit more customer service advisers and, under the current Government, are focused on transforming services to better support taxpayers.

Pursuant to the Answer of 18 December 2024 to Question 20062 on Bank Services: Direct Debits, what steps her Department is taking to ensure that organisations receiving payments via Direct Debit are held accountable when they do not (a) verify that Direct Debit instructions have been properly authorised by the payment account holder and (b) provide advance notice of the (i) amount and (ii) collection date for each Direct Debit payment, except where an alternative arrangement has been explicitly agreed.

Direct Debits are subject to rules made by Pay.UK, a private sector payment system operator that is regulated by the Bank of England and Payment Systems Regulator. In order to receive Direct Debit payments, businesses and other organisations must be ‘sponsored’ by a Payment Service Provider (usually their bank or building society). Businesses undergo stringent checks to ensure their identity and that they understand their responsibilities and obligations when using the Direct Debit scheme. If a business does not comply with the rules Pay.UK has a range of sanctions available, including removing the business from the service altogether if necessary. In the case of any incorrect or fraudulent payments, the account holder is entitled to an immediate refund of any unauthorised amounts collected from their account provider under the Direct Debit Guarantee scheme. Further information about Direct Debits is available at: www.directdebit.co.uk.

Pursuant to the Answer of 18 December 2024 to Question 20062 on Bank Services: Direct Debits, whether her Department is taking steps to ensure that organisations receiving payments via Direct Debit always (a) verify that Direct Debit instructions have been properly authorised by the payment account holder and (b) provide advance notice of the amount and collection date for each Direct Debit payment unless otherwise agreed.

I refer the Honourable Member to the answer given on 18 December 2024 to PQ UIN 20062.

What steps she is taking to ensure that (a) the Greater Manchester Pension Fund and (b) other pension providers have adequate (i) resources and (ii) support to complete the McCloud pension remedy process by 31 March 2025.

HM Treasury and responsible departments are supporting public service pension schemes to ensure they are able to provide a timely remedy to affected members. HMRC has issued a range of tax guidance to assist pension schemes in administering the McCloud remedy and will continue to keep this updated.

What discussions she has had with the Secretary of State for Work and Pensions on ensuring that tax guidance relating to the McCloud remedy is issued in a timely manner.

HM Treasury and responsible departments are supporting public service pension schemes to ensure they are able to provide a timely remedy to affected members. HMRC has issued a range of tax guidance to assist pension schemes in administering the McCloud remedy and will continue to keep this updated.

If she will make it her policy to replace Business Rates with a Land Value Tax collected by local authorities to disincentivise land banking by developers.

We are creating a fairer business rates system that protects the high street, supports investment, and is fit for the 21st century. At the Autumn Budget, we published a Discussion Paper setting out priority areas for reform and invites stakeholders to have a conversation with government about transforming the business rates system.Fulfilling all our manifesto objectives on business rates is a multi-year process, and reforms will be designed in collaboration with stakeholders and phased over the course of the Parliament to minimise disruption for businesses.

If she will make an assessment of the potential merits of bringing forward legislative proposals to require explicit consumer consent for each direct debit set up on a bank account.

The government believes there should be strong protections in place to ensure that customers can make payments in a secure and informed way. There are already such protections in place for Direct Debit payments under the rules made by its operator, Pay.UK, which is regulated by the Bank of England and the Payment Systems Regulator. As such, the government does not currently have plans to legislate in this area. Under these rules, when a Direct Debit is established the receiving organisation is required to verify that the Direct Debit instruction has been authorised by the payment account holder. Notice of the amounts and dates of collection for each Direct Debit payment must also be given to customers in advance, unless otherwise agreed, enabling customers to review their upcoming outgoing payments and plan ahead.  In the case of any incorrect or fraudulent payments, the account holder is entitled to an immediate refund of any unauthorised amounts collected from their account provider under the Direct Debit Guarantee scheme. Further information about Direct Debits is available at: www.directdebit.co.uk