Written questions by Chamberlain.

What steps her Department is taking to align the UK Carbon Border Adjustment Mechanism with (a) the EU and (b) other international partners to (i) minimise trade frictions and (ii) administrative burdens for UK businesses.

Awaiting answer.

What recent assessment her Department has made of the risk of carbon leakage under the UK Carbon Border Adjustment Mechanism, particularly in relation to imports from countries with high carbon intensity production.

Awaiting answer.

What assessment she has made of the potential impact of the differences between the UK and EU Carbon Border Adjustment Mechanisms on the competitiveness of UK industries.

Awaiting answer.

What her planned timetable is for publishing the (a) scope, (b) methodology, (c) sectoral coverage and (d) other details of the UK Carbon Border Adjustment Mechanism.

Awaiting answer.

Pursuant to the answer of 11 December 2025 to Question 96736, how many HMRC National Minimum Wage inspections were conducted in Scotland in 2024/25; and how many of these were carried out in social care settings.

Our data represents all closed inspections (‘investigations’). There were 220 closed inspections in Scotland in 2024/25. This data was published in the Supplementary data for the 2024/2025 National Minimum Wage Enforcement and Compliance Report (Table 6).https://www.gov.uk/government/publications/national-living-wage-and-national-minimum-wage-government-evidence-on-enforcement-and-compliance-2025Of the 220 closed inspections, 6 were social care cases.

How many staff are employed by HMRC in national minimum wage enforcement in 2025-26; and how many of these staff are a) based in Scotland and b) cover Scotland in their role responsibilities.

As of September 2025, HMRC employed 442 people as part of its National Minimum Wage (NMW) Enforcement unit. Of these, 44 are based in Scotland. The NMW teams which are based in Edinburgh and East Kilbride are part of HMRC’s National NMW compliance function. These team’s work not only incorporates NMW compliance activity within Scotland, but it also covers activity across the UK. Some NMW compliance activity in Scotland is also undertaken by other UK based NMW teams.

With reference to the Government's Future of Post Office Green Paper, if a date has been set for the planned roundtable with Post Office and key banks on potentially expanding the banking services available at post offices.

The Government recognises the importance of access to cash and banking services for businesses and individuals, including those who may be in vulnerable groups or require assistance and is supportive of industry initiatives that improve access to these vital services. The Post Office plays a key role in supporting access to banking services. Under the Banking Framework, a commercial agreement between the Post Office and 30 banking firms, personal and business customers can withdraw and deposit cash, check their balance, pay bills and cash cheques at 11,500 Post Office branches across the UK. The specific services provided under the Framework are subject to commercial negotiations between individual banks and the Post Office, and the Government has no role in deciding what these arrangements are. The Government would welcome continued collaboration between Post Office and the banking sector, on a commercial basis and will look to host joint discussions with Post Office and the banking sector in the coming months.

What steps she is taking to assist (a) older people and (b) people who are not digitally confident in accessing online banking services.

The Government understands the importance of face-to-face banking to communities and high streets across the UK, and is committed to championing sufficient access for all as a priority. This is why the Government is working closely with industry to roll out 350 banking hubs across the UK. The UK banking sector has committed to deliver these hubs by the end of this Parliament. Over 230 hubs have been announced so far, and over 180 are already open.Whilst the Government meets with LINK to discuss a variety of matters, any decisions on changes to LINK’s independent assessment criteria are a matter for LINK and the financial services sector. The treatment of customers by UK banks is governed by the the Financial Conduct Authority, which requires firms to provide a prompt, efficient, and fair service to all of their customers. This includes special considerations for vulnerable customers. In addition, like all service providers, banks and building societies are bound under the Equality Act 2010 to make reasonable adjustments, where necessary, in the way they deliver their services. Alternative options to access everyday banking services can be via telephone banking, through digital means such as mobile or online banking, and via the Post Office. The Post Office Banking Framework allows personal and business customers to withdraw and deposit cash, check their balance, pay bills and cash cheques at 11,500 Post Office branches across the UK.

What steps she is taking to ensure that face-to-face banking services remain accessible to (a) older people and (b) those who lack digital confidence.

The Government understands the importance of face-to-face banking to communities and high streets across the UK, and is committed to championing sufficient access for all as a priority. This is why the Government is working closely with industry to roll out 350 banking hubs across the UK. The UK banking sector has committed to deliver these hubs by the end of this Parliament. Over 230 hubs have been announced so far, and over 180 are already open.Whilst the Government meets with LINK to discuss a variety of matters, any decisions on changes to LINK’s independent assessment criteria are a matter for LINK and the financial services sector. The treatment of customers by UK banks is governed by the the Financial Conduct Authority, which requires firms to provide a prompt, efficient, and fair service to all of their customers. This includes special considerations for vulnerable customers. In addition, like all service providers, banks and building societies are bound under the Equality Act 2010 to make reasonable adjustments, where necessary, in the way they deliver their services. Alternative options to access everyday banking services can be via telephone banking, through digital means such as mobile or online banking, and via the Post Office. The Post Office Banking Framework allows personal and business customers to withdraw and deposit cash, check their balance, pay bills and cash cheques at 11,500 Post Office branches across the UK.

What discussions she has had with LINK on the potential for widening the criteria for establishing additional banking hubs across the UK.

The Government understands the importance of face-to-face banking to communities and high streets across the UK, and is committed to championing sufficient access for all as a priority. This is why the Government is working closely with industry to roll out 350 banking hubs across the UK. The UK banking sector has committed to deliver these hubs by the end of this Parliament. Over 230 hubs have been announced so far, and over 180 are already open.Whilst the Government meets with LINK to discuss a variety of matters, any decisions on changes to LINK’s independent assessment criteria are a matter for LINK and the financial services sector. The treatment of customers by UK banks is governed by the the Financial Conduct Authority, which requires firms to provide a prompt, efficient, and fair service to all of their customers. This includes special considerations for vulnerable customers. In addition, like all service providers, banks and building societies are bound under the Equality Act 2010 to make reasonable adjustments, where necessary, in the way they deliver their services. Alternative options to access everyday banking services can be via telephone banking, through digital means such as mobile or online banking, and via the Post Office. The Post Office Banking Framework allows personal and business customers to withdraw and deposit cash, check their balance, pay bills and cash cheques at 11,500 Post Office branches across the UK.

Pursuant to the Answer of 22 July to Question 67982 on Social Rented Housing: Repairs and Maintenance, what the actual value is of financial guarantees issued to date by the National Wealth Fund to support social housing retrofit loans provided by (a) NatWest Group, (b) Barclays UK Corporate Bank, (c) Lloyds Banking Group and (d) The Housing Finance Corporation.

The National Wealth Fund have agreed to guarantee up to £1.3 billion of loans provided by NatWest, Barclays, Lloyds and The Housing Finance Corporation to upgrade social housing. To date, Barclays have signed one deal worth £50 million, and Lloyds Banking Group has signed two deals worth £160 million in total.

With reference to her remit letter to the FCA on 14 November 2024, what steps her Department is taking to work with the FCA to have regard to financial inclusion.

The Government recognises the key role the Financial Conduct Authority (FCA) has in improving financial inclusion for UK consumers. This is why the FCA is part of the Financial Inclusion Committee which has been convened to develop a Financial Inclusion Strategy. The membership of the committee reflects the fact that the whole financial inclusion ecosystem will need to work together for the strategy to be a success, including government, industry, consumer representatives, and the regulator. The strategy will be published later this year and will seek to tackle a range of barriers which prevent individuals from accessing the financial services and products they need. This will include actions for the FCA to take forward as part of their responsibilities within the sector, as well as relevant metrics to monitor the strategy’s progress. The Government will work closely with the FCA to deliver the strategy and regularly engages with the FCA on this topic at ministerial and official level. In November, the Chancellor also included reinforcing financial inclusion as a matter for the FCA to have regard to in her letter of recommendation. In response to this, Nikhil Rathi noted the FCA’s support for the development of the Financial Inclusion Strategy and its collaboration with partners to help build consumers’ financial resilience.

What discussions she has had with the Financial Conduct Authority on the resources required to deliver on its financial inclusion obligations.

The Government recognises the key role the Financial Conduct Authority (FCA) has in improving financial inclusion for UK consumers. This is why the FCA is part of the Financial Inclusion Committee which has been convened to develop a Financial Inclusion Strategy. The membership of the committee reflects the fact that the whole financial inclusion ecosystem will need to work together for the strategy to be a success, including government, industry, consumer representatives, and the regulator. The strategy will be published later this year and will seek to tackle a range of barriers which prevent individuals from accessing the financial services and products they need. This will include actions for the FCA to take forward as part of their responsibilities within the sector, as well as relevant metrics to monitor the strategy’s progress. The Government will work closely with the FCA to deliver the strategy and regularly engages with the FCA on this topic at ministerial and official level. In November, the Chancellor also included reinforcing financial inclusion as a matter for the FCA to have regard to in her letter of recommendation. In response to this, Nikhil Rathi noted the FCA’s support for the development of the Financial Inclusion Strategy and its collaboration with partners to help build consumers’ financial resilience.

What metrics her Department will use to evaluate the Financial Conduct Authority’s performance in advancing financial inclusion.

The Government recognises the key role the Financial Conduct Authority (FCA) has in improving financial inclusion for UK consumers. This is why the FCA is part of the Financial Inclusion Committee which has been convened to develop a Financial Inclusion Strategy. The membership of the committee reflects the fact that the whole financial inclusion ecosystem will need to work together for the strategy to be a success, including government, industry, consumer representatives, and the regulator. The strategy will be published later this year and will seek to tackle a range of barriers which prevent individuals from accessing the financial services and products they need. This will include actions for the FCA to take forward as part of their responsibilities within the sector, as well as relevant metrics to monitor the strategy’s progress. The Government will work closely with the FCA to deliver the strategy and regularly engages with the FCA on this topic at ministerial and official level. In November, the Chancellor also included reinforcing financial inclusion as a matter for the FCA to have regard to in her letter of recommendation. In response to this, Nikhil Rathi noted the FCA’s support for the development of the Financial Inclusion Strategy and its collaboration with partners to help build consumers’ financial resilience.

What the value is of financial guarantees provided by the National Wealth Fund to support social housing retrofit loans provided by (a) NatWest Group, (b) Barclays UK Corporate Bank, (c) Lloyds Banking Group and (d) The Housing Finance Corporation since October 2024.

The National Wealth Fund (NWF) has committed £1.3bn total guarantees for social housing retrofit to help mobilise private capital into the social housing sector at scale. As of July 2025, the NWF has committed to providing guarantees of up to: a. £400m for NatWest Group2. £350m for Barclays UK Corporate Bank3. £400m for Lloyds Banking Group3. £150m for The Housing Finance Corporation.

What steps she is taking to ensure that the whole financial services sector is involved in the delivery of the Financial Inclusion Strategy.

The development of the Financial Inclusion Strategy is being informed by a committee of industry and consumer representatives I chair, (including banks), ahead of its publication later this year. The strategy will examine the barriers consumers face and further action what more industry and Government can take in partnership to address them, including a focus on how to increase access to affordable credit. This workstream is being considered by a dedicated sub-committee which includes both financial services firms and consumer representative organisations.Action to improve financial inclusion will require a joined-up approach across the Government, the financial services sector, and civil society. The Government is engaging extensively on this agenda to ensure the strategy is informed by a wide range of expertise and frontline perspectives.

What discussions she has had with mainstream banks on the supply of affordable credit.

The development of the Financial Inclusion Strategy is being informed by a committee of industry and consumer representatives I chair, (including banks), ahead of its publication later this year. The strategy will examine the barriers consumers face and further action what more industry and Government can take in partnership to address them, including a focus on how to increase access to affordable credit. This workstream is being considered by a dedicated sub-committee which includes both financial services firms and consumer representative organisations.Action to improve financial inclusion will require a joined-up approach across the Government, the financial services sector, and civil society. The Government is engaging extensively on this agenda to ensure the strategy is informed by a wide range of expertise and frontline perspectives.

What progress she has made on developing a national financial inclusion strategy.

I have convened a Financial Inclusion Committee of industry and consumer representatives to develop the Government’s Financial Inclusion Strategy, which will be published later this year. The strategy will tackle a range of issues, including access to affordable credit, digital inclusion, and financial capability and education. I am meeting with the Committee in June to discuss potential strategy interventions.

What assessment she has made of the potential impact of removing VAT from children's bikes on levels of take up of cycling among children and young people.

VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services. Taxation is a vital source of revenue that helps to fund vital public services. Evidence suggests that businesses only partially pass on any savings from lower VAT rates. In some cases, reliefs do not represent good value for money, as there is no guarantee that savings will be passed on to consumers. The Government has no plans to remove VAT on children’s bikes.

What steps she is taking to support (a) credit unions and (b) other responsible lenders.

The Government has made clear its strong support for the credit union sector, recognising the value that credit unions bring to their members in local communities across the country in providing products and affordable credit. In her Mansion House speech on 14 November, the Chancellor announced new measures to support the growth of the credit union and mutuals sector. This included publishing a call for evidence on the potential to reform common bonds for credit unions in Great Britain, asking the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) to produce a report on the mutuals landscape by the end of 2025, and welcoming the establishment of an industry-led Mutual and Co-operative Business Council. The Government recognises that credit, when provided responsibly, can be crucial for people facing unexpected expenses or managing their cash flow. Alongside continuing to engage with the banking and mutuals sector, HM Treasury is considering access to affordable credit more broadly as part of the financial inclusion strategy work announced last year.Additionally, Community Development Finance Institutions (CDFIs) play an important role in the provision of credit to SMEs and individuals, promoting access to finance, and offering an alternative to mainstream lenders. The Government has a renewed commitment to the CDFI sector and launched the Community ENABLE Funding programme through the British Business Bank in November 2024. This has the overall purpose of increasing the supply of debt finance to smaller businesses by supporting CDFIs.