Money news: page 51
- June 2022
Research quantifies local poverty premium across Britain
Research from Fair By Design and the University of Bristol puts the cost of the poverty premium at £4.5 million a year for each parliamentary constituency and £2.8 billion for the national economy.
Financial Policy Committee confirms withdrawal of affordability stress test Recommendation
The Financial Policy Committee confirmed it will withdraw its mortgage affordability stress test Recommendation, with the change taking effect from 1 August 2022, following a consultation in February.
Government publishes response to BNPL regulation consultation
HM Treasury has published its response to the consultation on regulating buy now pay later, setting out a wider scope that includes short-term interest-free credit from third-party lenders, with further information requested by 1 August 2022.
UK Government sets out plans to regulate Buy-Now-Pay-Later
The Treasury set out plans on 20 June 2022 to bring buy now pay later lending under FCA regulation, with affordability checks, Ombudsman access and draft legislation due later in the year.
Report says women need to work until 83 to close gender pension gap
A report by Now Pensions and the Pension Policy Institute says women reach retirement with £136,800 less than men on average and would need 18 more years of full-time work to close the gap.
Government announces intention to reform the Consumer Credit Act
The government announced on 16 June 2022 that it intends to reform the Consumer Credit Act 1974, the law covering credit cards, personal loans and consumer hire agreements, with a first consultation to follow.
FCA consults on updates to branch and ATM closure guidance
The Financial Conduct Authority consulted from 14 June to 26 July 2022 on updated guidance for bank branch and ATM closures, proposing to treat long-term cuts to opening hours or services as partial closures.
FOS publishes Discussion Paper on future funding model
The Financial Ombudsman Service has published a Discussion Paper on possible changes to how it is funded, proposing that the levy on firms recover its fixed overheads and that case fees be restructured.
Case transfers from Personal Independence Payment to Adult Disability Payment began
People in Scotland receiving Personal Independence Payment began to have their awards transferred to Adult Disability Payment from 13 June 2022, as part of the phased replacement of the UK benefit.
Consultation published on protecting customers claiming tax repayments
A June 2022 consultation sought views on restricting repayment agents' use of assignments over income tax repayments, a practice later rendered void from 15 March 2023.
Cost of living becomes most cited reason for debt among StepChange new clients
An increase in the cost of living became the most cited reason for debt among new StepChange clients in June 2022, at 18%, up from 7% in September 2021.
FCA consults on updated guidance for firms on branch and ATM closures or conversions (GC22/2)
The Financial Conduct Authority has opened a consultation on updated guidance for banks and building societies on branch and ATM closures, extending its expectations to partial closures and other changes.
FCA sends Dear CEO letter to more than 3,500 retail lending firms on supporting customers in financial difficulty
The Financial Conduct Authority wrote to more than 3,500 retail lending firms in June 2022 setting out its expectation that they support customers in financial difficulty, including those affected by the rising cost of living.
FCA 'stronger nudge' pensions guidance rules come into force
From 1 June 2022 pension providers must offer savers over 50 a free Pension Wise appointment before they access a UK-based defined contribution pension, under FCA "stronger nudge" rules.
Government announces intention to reform the Consumer Credit Act 1974
HM Treasury has set out plans to move most of the Consumer Credit Act 1974 out of statute and into Financial Conduct Authority rules, opening a consultation that runs to 17 March 2023.
Government plans new APP scam reimbursement regulation
The government plans new regulation on authorised push payment scam reimbursement after a reported 40 per cent rise in the fraud, according to a June 2022 financial news round-up.
Government plans overhaul of consumer credit legislation
The government plans to overhaul consumer credit legislation alongside new regulation of Buy Now Pay Later credit and authorised push payment fraud, a June 2022 round-up of financial regulation news reports.
Government plans to regulate Buy Now Pay Later
The government plans to bring Buy Now Pay Later into regulation and overhaul consumer credit legislation, with Martin Lewis criticising the pace of the changes.
Klarna starts reporting BNPL borrowing to credit reference agencies
Klarna began reporting buy now pay later borrowing to credit reference agencies in June 2022, making some shoppers' deferred payments visible to lenders for the first time.
Leasehold Reform (Ground Rent) Act 2022 comes into force
The Leasehold Reform (Ground Rent) Act 2022 came into force on 30 June 2022, ending ground rents on most new residential leases in England and Wales.
Ofcom introduces one-page pricing information rule
Ofcom has introduced rules requiring communications providers to give customers a one page document explaining pricing terms and conditions at the point of signing up, alongside guidance on example estimates for inflation-linked rises.
Providers must offer Pension Wise appointments to customers accessing pensions
From June 2022 contract-based pension providers must refer customers to Pension Wise guidance, explain what it is and offer to book an appointment when customers access their pension savings.
Regulations 18C to 18E requiring referral of members to pensions guidance inserted
Regulations requiring pension scheme trustees to refer members and survivors to pensions guidance before transferring or accessing flexible benefits were inserted in Great Britain and Northern Ireland with effect from 1 June 2022.
Stamp Duty holiday ended, equity withdrawal for purchase fell away
Equity withdrawal at remortgage to fund additional property purchases fell back towards pre-pandemic levels after the temporary Stamp Duty holiday ended, UK Finance's Q1 2022 review reports.
Stronger Nudge rules come into force
Stronger Nudge rules took effect on 1 June 2022, requiring pension providers to offer guidance to people accessing defined contribution savings, with take-up monitored afterwards.
Treasury Select Committee warns against international competitiveness mandate for regulators
The Treasury Select Committee has warned against an "international competitiveness" mandate for UK financial regulators, a measure embedded in the Financial Services and Markets Bill.
- May 2022
Chancellor announces cost of living payments for benefit claimants
The Chancellor announced a £15 billion cost of living support package on 26 May 2022, including a one-off £650 payment to more than eight million low-income households on means-tested benefits.
Ofwat publishes Paying fair guidelines on supporting residential water customers
Ofwat has published Paying fair, guidelines setting principles and minimum service expectations for water companies in England and Wales on helping residential customers pay bills, access help and repay debts.
Government announces FCA will receive new powers over cash access
The Government said on 19 May 2022 that the Financial Conduct Authority will get new powers to protect the availability of cash withdrawal and deposit facilities in local communities across the UK.
Government announces revamp of lasting power of attorney system
The government has set out plans to let people make a lasting power of attorney entirely online, with new identity checks, while keeping the paper route open.