Category: Gov Press Releases

New figures show that around 54,000 households are no longer subject to the benefit cap, indicating that welfare reforms are working and more people are entering employment or have taken on more hours.

70% (140,000) of households on Housing Benefit were no longer capped in August 2018. This is an increase of 8,300 on the previous quarter (May 2018).

The benefit cap incentivises work, including part-time work, as claimants become exempt from the cap once they are in a job and are earning over a certain amount.

These figures come a day after Office for National Statistics (ONS) figures confirmed the number of children living in long-term workless households is down 580,000 since 2010, falling to its lowest level in more than a decade.

Work remains the best route out of poverty, with around 75% of children in poverty leaving poverty altogether when their parents move into full employment. Children living with a working adult do better in school, have better educational attainment and are more likely to be in work as adults.

Since the introduction of the benefit cap in April 2013, 205,000 households have had their benefits capped. Around 147,000 of these are no longer capped, and 54,000 households became exempt from the cap due to work.

The statistics also include the number of households on Universal Credit that have previously been subject to the cap, with 1,800 of these previously capped claimants exempt from the cap due to work.

The government has recently announced that it is spending an additional £1.7 billion a year on Universal Credit, increasing by £1,000 each the amount that 2.4 million households can earn each year before their Universal Credit begins to be withdrawn.

Work and Pensions Secretary Esther McVey, said:

Our welfare reforms are supporting more and more people into work – in fact since 2010 we have seen an average of 1,000 more people moving into employment each and every day.

Under the old system, over 1 million people spent most of a decade trapped on benefits. In stark comparison we now have seen record levels of employment.

And the benefit cap ensures we have a fairer system – fair for the taxpayer and fair for claimants – as well as a system that incentivises work. So it’s not surprising that we now have the lowest unemployment figures since 1975.

And with the latest budget announcements for Universal Credit, we will help even more families as we increase the amount people can earn by £1,000 before their benefit payment begins to be reduced – making sure it pays to work and it’s a smooth transition into work.

More about these statistics

Under the benefit cap, anyone eligible who moves into work and then earns enough for Working Tax Credit (or the equivalent under Universal Credit) becomes exempt.

The estimate of the number of children in households that were capped but went into work is for households that had their Housing Benefit capped only. It is calculated by multiplying the number of children in these households by the number of households, which is available on Stat-Xplore. Households with more than 5 children are grouped together, so for this calculation we have assumed that there are 6 children in these households.

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The UK Hydrographic Office (UKHO) has contributed to a new UK government-funded study on navigational requirements for autonomous maritime vessels.

The UKHO worked together with partner organisations L3 ASV and the Maritime and Coastguard Agency (MCA) to identify the future data requirements for autonomous shipping, and explore how navigational and wider geospatial data can be used to enable the safe navigation of smart and unmanned autonomous vessels.

The study, funded by the Department for Transport’s Transport Technology Research Innovation Grant (T-TRIG), started by exploring the characteristics of current navigational data and charts in terms of what they comprise, their structure and how they are updated. It then examined how these data sets could be repurposed to develop a prototype ‘Smart Chart’ system, incorporating data such as radio signals, regulations, tides and foundation navigational data, that can be interpreted by a computer without the use of an onboard crew.

Mark Casey, Head of Research, Innovation and Integration at the UKHO, commented: “A wealth of marine geospatial data, from bathymetry depicting the seafloor to the speed and direction of the tides, supports navigation across our oceans. For over 200 years, the UKHO has sourced, processed and supplied this information to shipping and defence to help keep mariners safe at sea. We have developed our expertise in sourcing and processing this location-based information to help others better understand the marine environment.”

“With our expertise and knowledge of data required for safe navigation, we are well placed to help our partners identify the data requirements and standards needed to support the use of autonomous vessels of the future.”

Commenting on the study, Nusrat Ghani, UK Shipping Minister, said: “As we move through the 21st century, technology will continue to transform the UK’s world-leading maritime sector. Innovations such as Smart Charts pave the way for automation and Smart Shipping, and we are keen to support British companies making the most of new technologies, giving our vibrant sector a competitive edge. Technology and innovation are a key part of our Maritime 2050 initiative, which will set a vision for the growth and success of our maritime sector over the next 30 years.”

Tim Wilkes, Product Manager, MCA, added: “Understanding the data requirements of autonomous vessels is going to be hugely important for the MCA if we are to continue to ensure the safety of navigation in UK waters to save lives and combat pollution.”

Dan Hook, Senior Director of Business Development, L3 ASV, commented: “Current navigational data and charts have been developed over centuries to be read and interpreted by humans.

“Today, and over the coming decade, more and more marine vessels will be operating unmanned, and the charts will be read by computers.”

The UKHO believes findings from the study will help to support the development of navigational requirements for autonomous vessels and will look to use its expertise in marine geospatial data to help further develop this area of shipping.

Asset Recovery Associates Limited (ARA) was incorporated as a private company in July 2011. The linked company, Asset Recovery Resources (ARR) Limited was incorporated as a private company in December 2012. Both had the same registered office address in Warrington.

The companies held themselves out as being able to recover funds lost by victims of failed alternative investment schemes.

However, an investigation by the Insolvency Service, launched following complaints, found ARR’s claims to be false. The reality was that there was little or no prospect of funds being recovered.

The court heard that ARR’s staff cold-called victims offering to recover their money in return for the payment of an advance fee.

Victims described the sales staff employed by the company as ‘aggressive and persistent’ and claiming, entirely falsely, they had been appointed by the Insolvency Service.

The court heard that neither company cooperated with the investigation. Mr Alexander Goodrich, the director of both companies, stated that ARR was a dormant company that had been hijacked by fraudsters and that he had no knowledge of the cold-calling activity.

Mr Goodrich admitted that ARA had been involved in recovering monies lost by individuals in investment scams but told the court that he took the fees out of monies recovered and did not charge clients up front. He failed to produce the company’s accounting records to the investigators, claiming he no longer had access to them.

The lack of records has meant it has not been possible to find out how the companies got hold of investors’ details.

Commenting, David Hill , a chief investigator with the Insolvency Service, said:

ARR employed aggressive sales tactics to prey on people who had already lost money, seemingly with the aim of scamming them.

Members of the public, who have lost money in any kind of investment, should be wary of anyone calling them out-of-the-blue, claiming to be able to recoup their investment losses.

The Insolvency Service will investigate and shut down the activities of such companies.

On 22 October 2018, the court found that it was in the public interest that both companies be wound up.

Notes to editors

Asset Recovery Associates Limited was incorporated as a private company on 4 July 2011. The current registered office is located at 264 Old Liverpool Road, Warrington, WA5 1DZ.

The current recorded director of the company is Mr Alexander Goodrich.

Asset Recovery Resources Limited was incorporated as a private company on 27 December 2012. The current registered office is located at 264 Old Liverpool Road, Warrington, WA5 1DZ.

The current recorded director of the company is Mr Alexander Goodrich.

The petitions were presented under s124A of the Insolvency Act 1986 on 20 June 2018. By virtue of the winding up orders made on 22 October 2018 the Official Receiver is liquidator of the companies.

Company Investigations, part of the Insolvency Service, uses powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK on behalf of the Secretary of State for Business, Energy & Industrial Strategy (BEIS). Further information about live company investigations is available here.

The Insolvency Service administers the insolvency regime, investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. It may also use powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK. In addition, the agency deals with disqualification of directors in corporate failures, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice.

Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.

All public enquiries concerning the affairs of the company should be made to: The Official Receiver, Public Interest Unit, 4 Abbey Orchard Street, London, SW1P 2HT. Telephone: 0207 637 1110 Email: piu.or@insolvency.gsi.gov.uk.

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BVM, a Manchester-based company and its sister companies, all sold customers services to improve their online business profiles, all, to little or no commercial benefit.

All four companies have been wound up following investigations by the Insolvency Service.

In the case of BVM, the alleged customer offer was to manage company business profiles on ‘Google Places’ for business.

The first of the four companies operating the model to be wound-up (in April 2015), was On Line Platform Management Consultants Ltd, following that the second was Movette Ltd in July 2017 before the third TBL (UK) Ltd, in August 2018.

BVM continued the same or a very similar business to that previously carried on by Movette Ltd (Movette) (which was wound up on 28 July 2017 on the grounds that it operated against the public interest).

The Insolvency Service investigated the company’s affairs following complaints from customers. But the investigation was severely limited due to a lack of co-operation from those in control of BVM who failed to produce business documents.

The investigation established, and in winding up the company the Court accepted, that BVM had continued the objectionable business model previously carried on by Movette, by continuing to target the former customers of Movette.

Similarly, customers received little or no commercial benefit from the Google Places management service they purchased from BVM on an annual basis.

Furthermore, the court heard that BVM employed inappropriate and objectionable methods of debt collection and that the company had been abandoned by those controlling its day to day operations.

On 2 October 2018, the High Court sitting in Manchester heard the petition presented on behalf of the Secretary of State for Business, Enterprise and Industrial Strategy.

In the absence of evidence submitted by the company, who failed to attend the hearing, Deputy District Judge Heseltine wound-up the company, in the public interest.

Commenting, David Hope, Chief Investigator with the Insolvency Service, said:

Beyond Vision Media Ltd continued an objectionable business model that used inappropriate methods of trading designed to extract money from businesses under false pretences.

The Insolvency Service will take action to shut down such rogue businesses. Additionally, the business community should take steps to verify the credentials of any third party that contacts them claiming to be continuing the services previously provided by Movette Ltd and/or Beyond Vision Media Ltd.

Notes to editors

Beyond Vision Media Ltd – company registration number 8586915 – was incorporated on 27 June 2013. The company’s registered office is at Unit 77 Cariocca Business Park, 2 Sawley Road, Manchester, M40 8BB.

The petition to wind-up Beyond Vision Media Ltd was presented under s124A of the Insolvency Act 1986 on 3 August 2018. The company was wound up on 2 October 2018 and the Official Receiver, Public Interest Unit (North) has been appointed as liquidator.

On Line Platform Management Consultants Ltd was incorporated on 25 January 2012. Its registered office was at Suite 125, 23 New Mount Street, Manchester M4 4DE.

The petition to wind up Online Platform Management Consultants Ltd was presented under s124A of the Insolvency Act 1986 on 03 February 2015. The Official Receiver was appointed as provisional liquidator on 10 February 2015. The company was wound up on 13 April 2015 and the Official Receiver was appointed as liquidator. The director of Online Platform Management Consultants Ltd, Roy Junior De-Vent, was subsequently disqualified from acting as a director for a period of 11 years.

Movette Ltd – company registration number 08705982 – was incorporated on 25 September 2013. The company’s registered office is at 86 Stonemere Drive, Radcliffe, Manchester M26 1QX and it traded from 23 New Mount Street, Manchester M4 4DE.

The petition to wind-up Movette Ltd was presented under s124A of the Insolvency Act 1986 on 12 May 2017. The Official Receiver was appointed provisional liquidator of the company on 18 May 2017. The company was wound up on 28 July 2017 and the Official Receiver has been appointed as liquidator.

TBL (UK) Ltd (Company number 10084021), was wound up on 20 August 2018.

Company Investigations, part of the Insolvency Service, uses powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK on behalf of the Secretary of State for Business, Energy & Industrial Strategy (BEIS).

Further information about live company investigations is available here. The Insolvency Service, an executive agency sponsored by the Department for Business, Energy and Industrial Strategy (BEIS), administers the insolvency regime, and aims to deliver and promote a range of investigation and enforcement activities both civil and criminal in nature, to support fair and open markets. We do this by effectively enforcing the statutory company and insolvency regimes, maintaining public confidence in those regimes and reducing the harm caused to victims of fraudulent activity and to the business community, including dealing with the disqualification of directors in corporate failures.

BEIS’ mission is to build a dynamic and competitive UK economy that works for all, in particular by creating the conditions for business success and promoting an open global economy. The Criminal Investigations and Prosecutions team contributes to this aim by taking action to deter fraud and to regulate the market. They investigate and prosecute a range of offences, primarily relating to personal or company insolvencies.

The agency also authorises and regulates the insolvency profession, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice.

Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.

By virtue of the appointment of the Official Receiver all public enquiries concerning the affairs of the company should be made to: The Official Receiver, Public Interest Unit, 2nd Floor, 3 Piccadilly Place, London Road, Manchester, M1 3BN. Tel: 0161 234 8531 Email: piu.north@insolvency.gsi.gov.uk.

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This is due to the retailers’ annual groceries turnover now exceeding £1bn.

The Groceries Supply Code of Practice (The Code) sets out how such grocery retailers should treat their suppliers and aims to make sure that they do not abuse their commercial power. For example, retailers bound by the Code cannot make changes to the terms of supply retrospectively and must provide notice of and reasons for no longer using a supplier.

Compliance with the Code is managed by the independent Groceries Code Adjudicator. The CMA regularly monitors UK retailers to see if they meet the criteria to be subject to the Code, as it only applies to those companies with an annual groceries turnover of more than £1bn.

The Code was created in 2009 following an investigation by the Competition and Market Authority’s (CMA) predecessor, the Competition Commission (CC). The CC investigated the supply of groceries in the UK and found that some suppliers of larger retailers were being treated unfairly. This meant suppliers were less likely to innovate and invest, leading to less choice and availability for customers.

Peter Hill, Head of Remedies Enforcement at the CMA, said:

These rules mean that suppliers are protected from unfair business practices, and retailers can trade with confidence on a level playing field. Businesses supplying Ocado and B&M will now also benefit from this protection.

Other retailers subject to the Code are Asda Stores Limited, Co-operative Group Limited, Marks & Spencer PLC, Wm Morrison Supermarkets PLC, J Sainsbury PLC, Tesco PLC, Waitrose Limited, Aldi Stores Limited, Iceland Foods Limited, and Lidl UK GmbH.

Notes to editors

1. The CMA has designated Ocado and B&M Homestores under the Groceries (Supply Chain Practices) Market Investigation Order 2009, which means that they now need to comply with the Groceries Supply Code of Practice.
2. The CMA agreed with Government, as part of the Groceries Code Adjudicator Review, in February 2018, to formalise its current activities by reviewing publicly available information on an annual basis. Where there are reasonable grounds for suspecting that any retailer may have reached the turnover threshold specified in the Order, the CMA will request further evidence from it. This will allow the CMA to assess whether that retailer should be added to the list of designated retailers.
3. The Groceries Code Adjudicator Act, which created the GCA, came into force on 25 June 2013. The GCA is funded by a levy on regulated retailers with a UK annual turnover of more than £1bn.
4. Media enquiries should be directed to the CMA’s press team: press@cma.gov.uk, or 020 3738 6460.

A Downing Street spokesperson said:

Today the Prime Minister and the Chancellor of the Exchequer addressed around 150 Chairs and Chief Executives of UK businesses and business group leaders about this week’s Budget and progress in the Brexit negotiations.

The Prime Minister opened the event by saying that, thanks to the hard work and sacrifices made by the British people since the financial crisis, the public finances are in much better health. She explained that the government will continue to take a balanced approach. This has enabled the government to make important spending decisions in this Budget to invest in public services, boost living standards, and support business as we build a new economy for a post-Brexit Britain.

She set out that the government would work to build a Britain that would be unequivocally pro-business through enhancing competitiveness, helping businesses plan for the future, and using the modern Industrial Strategy to create the right environment for businesses to thrive. She noted the importance of working closely with business to achieve this and ensure that the UK continues to lead the world in terms of innovation.

The Prime Minister then provided an update on progress in the Brexit negotiations, before the Chancellor addressed the group about the broader state of the economy and his approach to this week’s Budget.

The Chancellor spoke about the resilience of the British economy, noting the growth in the number of jobs in the economy. He spoke about the productivity challenge and acknowledged that the government had a role to help rectify this, including through driving the R&D agenda and ensuring that benefits were spread out across the whole of the UK.

The businesses present welcomed the opportunity to speak to the Prime Minister and the Chancellor and feedback directly on the Budget. Business leaders asked specific questions on the Budget such as the Digital Services Tax and the apprenticeship levy, and broader questions on the Brexit negotiations and preparedness.

The government has today opened applications for specialist, not-for-profit education providers to apply to run the UK’s first Secure School. This provides a custodial setting for young people which is focused on education and health services.

This is the very first example of this establishment in the UK. Based at Medway, it will offer up to 70 places for boys and girls between the ages of 12 and 17 and will predominantly serve the South East, including London – a crucial area of demand. Headteachers will be given complete autonomy to run a tailored curriculum.

Justice Minister Edward Argar said:

Today’s publication of the ‘How to Apply Guidance’ is a crucial step in our ongoing commitment to reform youth custody and equip children with the skills they need to live successful, crime-free lives on release.

Secure Schools will lead the way across the youth estate by focusing on tailored early intervention and putting education, healthcare and physical activity at the heart of rehabilitation.

Parliamentary Under Secretary of State for the School System Lord Agnew said:

All children deserve the chance to fulfil their potential regardless of their background or circumstances – a high quality education can be the key to helping young offenders get their lives back on track.

That is why we have worked with the Ministry of Justice in the development of Secure Schools so that education, care and health are at the heart of youth justice.

Academies are rich in expertise and innovation that could be extended to helping these young people and I hope to see them putting themselves forward for this.

The Ministry of Justice has engaged with and listened to over 150 stakeholders to ensure the Secure Schools model is built on evidence and shaped by best practice.

The application process has been designed to ensure a wide range of organisations is able to make a strong application, including those with less experience of bidding for government contracts – resulting in a provider with genuine expertise and experience in this field. It will run until February 2019 before a provider is announced in the summer – with the aim of the school opening in Autumn 2020.

Applicants will be asked to demonstrate a child focussed ethos and show their experience of working with children who have undergone significant trauma.

£5 million will be invested to redevelop Medway Secure Training Centre in to a Secure School, including extensive refurbishment of the existing classrooms and residential areas as well as improvement to sports provision on the site. This work will benefit from the findings of the review of sport in youth custody and efforts ongoing as part of the Education and Employment Strategy – both published this year.

Secure Schools are just one part of a package of reforms to the youth estate, including developing Enhanced Support Units to provide specialist support to children with the most complex needs. We are also expanding frontline staff capacity in public-sector YOIs by 20% equating to over 120 new recruits.

Notes to editors

• The government is developing a specific inspection regime to robustly monitor the performance of Secure Schools.
• Secure Schools will be run by secure school academy trusts and will be governed and run under the same legislation as children’s homes and academies.