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The CAA’s Michael Budge (centre) told an Abta conference last week: ‘When we said segregation is our preferred option, that was not us saying segregation will be a requirement’


CAA clarifies Atol reform start date and APC rates


Head of Atol Budge insists ‘no decisions have been made’. Ian Taylor reports


The CAA provided two small but significant clarifications on Atol reform last week while insisting “no decisions have been made”. First, CAA head of Atol Michael


Budge confirmed businesses renewing Atols next March will do so under the current regime and not have to meet new requirements from April 1 despite the CAA’s intention to introduce a reformed scheme from next April. This flexibility could also extend to the September renewals, with Budge suggesting: “There may be the option to sit under one regime


48 18 MAY 2023


or the other in September 2024.” Second, Budge told the annual


Abta Travel Law Seminar in London that a variable rate of Atol Protection Contribution (APC) could be introduced from the April start date. The industry had been led to believe a variable APC would require primary legislation. But Budge said the change “would not require primary legislation but a piece of secondary legislation be set before Parliament”. This was subsequently confirmed by the CAA. Segregation remains the CAA’s “preferred option” for reform, but


Budge told the seminar: “There appear misconceptions about what segregation means.” He insisted “we’re not saying


anything will be mandated” and explained: “When we said segregation is our ‘preferred option’, that was not us saying segregation will be a requirement. Segregation may be as simple as separating customer money and demonstrating how you use it. “That doesn’t necessarily mean


Continued on page 46 travelweekly.co.uk


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