Financial Inclusion Strategy 2025-12-09
2025-12-09
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Response quality
Questions & Answers
Q1
Direct Answer
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Context
The MP is concerned about policyholders over the age of 70 affected by the withdrawal of CMutual's family protection plan on November 30. She highlights that these individuals have paid premiums in excess of expected payouts and are now left without alternative provisions.
I welcome the Minister’s response. I am a long-standing member of the NHS credit union, which is one of the credit unions affected by the withdrawal of the family protection plan by CMutual on 30 November. Policyholders over the age of 70 who have paid premiums well in excess of what they would have expected to have paid out have been left in the lurch with no alternative provision given. In the interim, can she bring all the stakeholders to the table to try to reach a solution that benefits those policyholders in particular?
As my hon. Friend knows, I have been very sorry to hear of the difficulties of those affected by the withdrawal of that product. I pay tribute to her for all her efforts and those of her colleagues. They are doing everything possible to assist constituents. My officials are monitoring the matter very closely. We encourage anyone with information relevant to the Financial Conduct Authority’s investigation to go straight to the FCA. However, I would be more than happy to do as she suggests and get the stakeholders together.
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Assessment & feedback
Response accuracy
Q2
Partial Answer
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Context
The MP is concerned about the withdrawal of banking services from high streets, particularly in rural areas. He mentions that post offices have been picking up the tab for these services but are not adequately funded by banks.
Access to banking is surely a key part of financial inclusion. The high street banks save £2 billion a year from having abandoned our high streets and town centres. Our post offices pick up the tab and we are glad that they do, but they are not funded by the banks anywhere near enough to be able to maintain their presence. In Westmorland, we have lost Hawkshead, Staveley and Grasmere post offices, and we are set to lose Shap and Tebay largely because the banks do not fund the post offices for doing their jobs properly. What is the Chancellor going to do to make them do that?
I thank the hon. Member for his question. We very much understand the importance of in-person banking, including in beautiful, rural communities such as those that he represents. That is exactly why we are committed to rolling out 350 banking hubs right across the UK by the end of this Parliament. Over 240 hubs have been announced so far and more than 190 are already open.
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Assessment & feedback
The answer discusses banking hubs rather than addressing how to ensure proper funding of post offices by banks.
Changing Subject
Response accuracy