Government warned over cancelled holiday bills

People left out of pocket by cancelled holidays must be reimbursed by the government, should travel companies be left unable to pay, the shadow transport secretary has said.

Gavin Newlands, the SNP’s spokesman for transport at Westminster, says the Tories should consider introducing a Government Travel Guarantee Fund to financially guarantee vouchers and refunds for consumers facing cancelled travel plans.

The call for strengthening consumer protections comes as the turmoil in the airline industry grows, putting claims for reimbursement at risk.

Mr Newlands, MP for Paisley and Renfrewshire North, said: “With travel plans disrupted or cancelled indefinitely, and airlines and travel firms in increased difficulty, it is vital that the UK Government explores measures to financially guarantee voucher claims and refunds for consumers.

“Household incomes are under pressure due to the coronavirus crisis, and it’s vital that the public are protected and consumer rights are upheld – especially at a time when people may increasingly rely on refunds and claims to get by.

“The travel industry must also look to ensure that there is capacity to respond to an increased volume of requests from customers, as concerns grow over claims being paid out to those affected.

“The travel industry has been hit hard by the coronavirus pandemic, and I urge the UK Government to seriously consider proposed measures from consumer groups - including a Government Travel Guarantee Fund - that will protect the sector and strengthen the rights of customers.”