**FAQ**

1. **Why is the Treasury covering losses at the Bank of England?**
– The Bank of England is making losses due to the large payouts it is giving to the banking sector. The Treasury covers these losses to ensure the Bank can continue its operations.

2. **How much money is expected to be covered by the Treasury in the next five years?**
– The Treasury is predicted to cover £100 billion worth of losses at the Bank of England in the next five years.

3. **Are there alternative ways to spend the money instead of covering Bank of England losses?**
– Yes, implementing changes such as tiered reserves and green interest rate schemes could reduce the payments to the banking sector and allow the Treasury to allocate funds to other government objectives like public services and investments.

4. **What is the purpose of implementing tiered reserves and green interest rates?**
– Tiered reserves could reduce the payments to the banking sector, saving the Bank of England up to £11 billion a year, while green interest rates would incentivize banks to make more environmentally friendly loans, aligning with net-zero transition goals.

**Conclusion**

The current scenario where the Treasury covers losses at the Bank of England raises questions about the effectiveness of public funds allocation. Instead of subsidizing the banking sector with large payouts, alternative methods such as tiered reserves and green interest rates could better align public funds with social and environmental objectives. By implementing these changes, not only could the Treasury save significant amounts annually, but it could also contribute to achieving climate goals and supporting essential public services and investments. It’s imperative to consider better ways to utilize public funds for the benefit of society as a whole.