The Queen confirmed that two key pieces of legislation, the Travel Protection Bill and the Financial Guidance and Claims Bill, would be debated in the new Parliament.

The Travel Protection Bill will update the financial protection scheme, bringing it into line with the update to the European Package Travel Directive. The Bill will ensure the Atol scheme ‘keeps pace with innovation in the online travel market’ and see that appropriate protection is in place ‘regardless of whether consumers book online or the High Street’.

The Financial Guidance and Claims Bill will transfer the regulation of claims management services to the Financial Conduct Authority, and transfer complaints handling to the Financial Ombudsman Service.

The FCA will be able to cap fees that claims management companies charge consumers, ‘as well as ensuring a more robust authorisation process for new companies who wish to enter the market’.

Despite Theresa May’s government not having a majority, neither of these bills are likely to face opposition in the new parliament. Abta commented:

“Abta welcomes the announcement that the government will bring forward a Travel Protection Bill. We hope the Bill can be passed quickly, and that the government will quickly publish consultations on the other aspects of reform to the Package Travel Regulations and the Atol regime.

"Urgent progress is required to enable businesses as much time as possible to adapt to the regulatory changes required by the revised Package Travel Directive.”