Committee publication · Correspondence · 10 December 2024
Letter from the Secretary of State relating to the evidence session on 26 November, 4 December 2024
Summary
Secretary of State Jonathan Reynolds responds to the Business and Trade Committee's 26 November and 4 December evidence sessions. He provides updates on three matters: Horizon compensation redress progress (21-day average wait for eligibility confirmation, 14 days to payment after ID verification); the forthcoming Audit Reform and Corporate Governance Bill (draft to undergo pre-legislative scrutiny, timing to be confirmed); and implementation timelines for the Economic Crime and Corporate Transparency Act 2023, with Companies House transformation proceeding through 2026.
Key findings
- Horizon compensation: claimants wait average 21 working days between registration and eligibility confirmation; post-verification payments reach accounts within 14 working days as of 18 November 2024.
- Audit Reform and Corporate Governance Bill to be published in draft for pre-legislative scrutiny this session; precise publication date not yet confirmed but Department progressing 'at pace'.
- Economic Crime and Corporate Transparency Act implementation underway with phased timeline: Companies House already exercising new powers (from March 2024) including rejecting fraudulent filings, improving address verification, and sharing data with law enforcement.
- Identity verification for directors, persons of significant control, and agents to be progressively mandated from autumn 2025 through spring 2026, with transition period extending to end of 2026.
- Authorised Corporate Service Provider registration and oversight of verification services expected by spring 2025; register of Overseas Entities trust information access by summer 2025.
Tone
ProceduralTopics
Key actors
Jonathan Reynolds, Liam Byrne, Business and Trade Committee, Department for Business and Trade, Companies House, Ministry of Justice
Notable line
“Claimants return ID documents on average within 6 working days of being requested by DBT, following which their ID is verified and preliminary payments are reaching claimant bank accounts within 14 working days.”
Key Quotes
“Since the scheme launched on 30 July, claimants have been waiting on average 21 working days between registration and confirmation of eligibility.”
“The bill will be published in draft for pre-legislative scrutiny in this session.”
“Implementation of the ECCT Act is well underway, with Companies House already actively using new powers created by the Act.”
Source · parliament.uk record ↗