Written Statements

Thursday 17th November 2022 Written Statements

Thursday 17 November 2022

Autumn Statement: Charter for Budget Responsibility

Thursday 17th November 2022 Written Statements

[The Chancellor of the Exchequer (Jeremy Hunt)]

Today I have published a draft updated charter for budget responsibility, a copy of which has been deposited in the Libraries of both Houses. Copies are also available in the Vote Office and Printed Paper Office. The draft sets out the new fiscal framework announced at autumn statement 2022.

The updated charter will be laid before Parliament, and a debate and vote scheduled, in due course.

[HCWS371]

Tax Credits and Child Benefit: Review of Rates

Thursday 17th November 2022 Written Statements

[The Chief Secretary to the Treasury (John Glen)]

The Tax Credits Act 2002 and the Social Security Administration Act 1992 place a statutory duty on His Majesty’s Treasury to review the rates of tax credits and child benefit each year in line with the general level of prices. There is a further statutory duty on the Treasury to increase guardian’s allowance in line with price growth. I have now concluded the review for the tax year 2023-24.

I have decided to increase tax credits and child benefit rates in line with the consumer price index (CPI) for the year to September 2022. Guardian’s allowance will also increase by the same rate. This means that:

The majority of elements and thresholds in working tax credit and child tax credit, including all disability elements, will increase by 10.1% from 6 April 2023. This means, for example, that the basic element of working tax credit will increase from £2,070 to £2,280 per year. In line with established practice and the Office for Budget Responsibility’s expectations in their welfare forecast, the maximum rate of the childcare element, the family element, the withdrawal rate and disregards in tax credits will remain unchanged.

All rates of child benefit, plus guardian’s allowance, will increase by 10.1 % from 10 April 2023. This means, for example, that the child benefit rate for the eldest child will increase from £21.80 to £24 per week.

The new rates will apply across the United Kingdom. I will deposit the full list of these rates in the Libraries of both Houses shortly.

[HCWS372]

Higher Education Investigations

Thursday 17th November 2022 Written Statements

[The Minister of State, Department for Education (Robert Halfon)]

Today I am laying regulations under section 71 of the Higher Education and Research Act 2017. These regulations will enable the Office for Students (OfS) to charge a fee for the investigation of providers’ compliance with quality and other requirements, where the investigation results in certain regulatory action or specified outcomes. These regulations will come into effect on 8 December 2022.

Improving the quality of higher education is a manifesto commitment, and one of my highest priorities. This Government are committed to ensuring that students and the taxpayer see returns on their investment and receive value for money. Accordingly, my Department is working with the OfS to implement a rigorous regime of investigations and in-person inspections that ensures robust action is taken where quality conditions of registration have been breached, or are at risk of being breached. I am also committed to ensuring the majority of providers, which are not in breach of the regulatory conditions, experience minimal regulatory burden.

The OfS will identify providers for investigation using a range of information sources, including outcomes data, student notifications, and other monitoring. My predecessor asked the OfS to put “boots on the ground” where necessary, and investigate universities where there are concerns about the quality of provision. These investigations will examine a range of quality matters, including whether courses are sufficiently up to date and academically challenging; whether students receive enough face-to-face engagement; and the extent to which providers secure positive outcomes for students.

Where the OfS finds that a provider’s performance just is not good enough, it may choose to take enforcement action. This could involve a sanction such as a monetary penalty or, if necessary, even go as far as the removal of a provider from the register. This work will effectively tackle pockets of poor-quality provision, and ensure all students, regardless of their background, can benefit from high-quality, world-leading higher education.

In order to fund this regime sustainably, as well as deter against the growth of poor-quality provision, these regulations will allow the OfS to charge a fee for the investigation of providers’ compliance with quality and other requirements, where the investigation results in certain regulatory action or specified outcomes, such as the imposition of a specific ongoing condition of registration. Doing so will help to ensure that the costs of investigations will fall on those responsible for their necessity, and that those in good standing face a more proportionate regulatory burden than would be the case if we did not lay these regulations.

[HCWS373]

Levelling Up and Regeneration Bill

Thursday 17th November 2022 Written Statements

[The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)]

The Levelling Up and Regeneration Bill contains important powers to drive local growth, empower local leaders to regenerate their areas and ensure that everyone can share in the United Kingdom’s success. It underscores this Government’s continuing commitment to levelling up and securing better outcomes for communities. Yesterday I tabled a number of Government amendments which strengthen the Bill and deliver on our manifesto commitments.

Strengthening devolution within England is a key component of levelling up. The amendments make it clear that there is no possibility of district councils in two-tier authorities having their functions taken away from them and given to combined county authorities. The amendments also enhance powers for mayors to manage their key routes networks to increase transport connectivity, and will enable stronger partnership working between police and crime commissioners and local government by removing a perceived barrier to commissioners participating in local government committee meetings.

Levelling up also means improving access to high-quality and affordable homes across the country, and doing so in ways which meet the needs and expectations of local people. The planning reforms in the Bill will give communities more control over what is built, where it is built, and what new buildings look like, as well as greater assurance that the infrastructure needed will be provided. These reforms create stronger incentives to support development where it is needed.

The reforms are based on five key principles. First, delivering high-quality and beautiful buildings, restoring a sense of community and pride in place. Secondly, enabling the right infrastructure to come forward, boosting productivity and spreading opportunities. Thirdly, enhancing local democracy and engagement by empowering local leaders, increasing accountability and giving communities a stronger say over development. Fourthly, fostering better environmental outcomes. And fifthly, allowing neighbourhoods to shape their surroundings, empowering communities to restore local pride in place.

It is vital that the places we build are beautiful, durable and sustainable. I am already taking steps through the Bill to ensure that every local authority has a design code which can set high standards that reflect local views. National policy has also been strengthened to make it clear that development which is not well designed should be refused. I will announce more details shortly about how the Office for Place—our new body which will uphold high aesthetic standards in architecture—will support authorities in this important work.

Development must also be accompanied by the infrastructure needed to support it. Alongside the proposals for a more streamlined and non-negotiable infrastructure levy which are already contained in the Bill, our amendments will introduce powers to allow piloting of community land auctions. These would give local planning authorities new powers to capture value from land when it is allocated for development, which can then be used to enhance local infrastructure and services.

Strengthening local democracy is central to levelling up, and local communities rightly expect that permissions which they have democratically approved should be delivered. The amendments that I have laid add to the tools that local planning authorities can use to monitor and challenge slow delivery: by requiring developers to report annually on build-out of housing permissions, and giving them the power to decide whether to entertain future applications made by developers who have previously failed to build out existing planning permissions.

I am also firmly committed to enhancing our natural environment while enabling sustainable growth—and will further update the House on my plans to do so in due course. We are also creating a power for the Secretary of State to give new charging powers to certain statutory consultees so that they have greater resources to engage more quickly with nationally significant infrastructure projects.

We are giving local people more opportunity to shape their neighbourhoods by introducing an amendment setting out the full range of powers needed for street votes, giving residents the ability to vote for additional housing where they feel it is appropriate on their street. I have also tabled an amendment implementing a recommendation from Richard Bacon’s review into the self and custom-build sector, removing an ambiguity around the statutory duty to permission land for self and custom-built housing; providing further opportunities for those who wish to build or commission their own home, and for the small and medium-sized builders who are often part of this process, enabling communities to deliver the homes they want.

Levelling up and restoring pride in place means we want to make communities feel safe where they live. That is why our commitment to repeal the Vagrancy Act has always been dependent on the simultaneous introduction of modern replacement legislation to ensure police and other agencies continue to have the powers they need to keep communities safe and protect vulnerable individuals. The responses to the consultation provide a useful basis to inform the shape of future replacement legislation, and we will publish the Government response to the consultation in due course. For now, we will remove the placeholder clause from the Bill and we will not be bringing forward replacement legislation in the Levelling Up and Regeneration Bill. In the meantime, this Government have made the unprecedented commitment to end rough sleeping within this Parliament. We remain steadfastly committed to that goal.

Other amendments which have been laid make a number of technical improvements to the Bill. This includes making sure that development corporations can, where they are designated, take on certain supplementary planning functions where appropriate, so that their powers to drive regeneration and development are effective and up to date. The amendments also clarify the powers introducing high-street rental auctions, to make it harder for those landlords who are sitting on empty premises to avoid their property being subject to an auction, and make sure these powers can address the blight of empty high street shops. We will also make sure that regulations for the compulsory purchase regime in clause 150, which require authorities to comply with data standards, will be subject to the negative parliamentary procedure. The amendments also add a “pre-consolidation” clause to the Bill. This technical measure will enable the future consolidation of over 40 different Acts relating to planning and compulsory purchase law, making it much easier to access and understand for all users of the system.

This Bill represents a significant opportunity to give local leaders new powers to reinvigorate their communities and spread opportunity across our country. I look forward to the further discussions that will take place as we take it forward.

[HCWS375]

State Pensions and Benefits: Review of Rates

Thursday 17th November 2022 Written Statements

[The Secretary of State for Work and Pensions (Mel Stride)]

The Social Security Administration Act 1992 places an annual statutory duty on the Secretary of State to review the rates of state pensions and benefits after consideration of trends in price and earnings growth in the preceding year. I have now concluded this review for the tax year 2023-24.

I have decided that state pension and benefit rates should increase in line with the consumer prices index (CPI) for the year to September 2022. This means that they will increase by 10.1% from 10 April 2023.

I will deposit the full list of the new rates in the Libraries of both Houses in due course, but I am pleased to announce here the increases to some of the largest benefits. The full rate of the new state pension will increase from £185.15 to £203.85 a week. The basic state pension will increase from £141.85 to £156.20 a week. The standard minimum guarantee for a couple in pension credit will increase from £278.70 to £306.85 a week. The enhanced rate of the daily living component of personal independence payment will increase from £92.40 to £101.75 a week. The universal credit standard allowance for a couple where one or both are over 25 will increase from £525.72 to £578.82 a month; the limited capability for work and work-related activity amount will increase from £354.28 to £390.06 a month; and the child element for those born on or after 6 April 2017 will increase from £244.58 to £269.58 a month.

This decision will increase expenditure on state pensions and pensioner benefits by £13 billion in 2023-24 compared to no change in these rates for the same period. It will meet the Government’s manifesto commitment to apply the triple lock to the new and basic state pensions. It will also extend CPI protection to those who rely on the standard minimum guarantee in pension credit at a cost of £700 million above the statutory minimum requirement.

The decision will also increase expenditure on reserved non-pensioner benefits by £9 billion in 2023-24 compared to no change in these rates for the same period. This includes benefits for those with additional disability or care needs and increases to universal credit which provides essential support to people on the lowest incomes while they seek work, seek progression in work, or are unable to work.

In view of the exceptional situation that currently pertains with respect to fuel costs, I have also decided to freeze the standard fuel cost deductions in housing benefit, rather than increase them in line with the normal convention of the fuel element of CPI.

I can also confirm that the local housing allowance rates for 2023-24 will be maintained in cash terms at the elevated rates agreed for 2020-21.

I have also completed my periodic statutory review of the levels of the benefit cap which, since 24 March 2022 and under Section 96A of the Welfare Reform Act 2012, I am obliged to undertake at least once every five years. I have concluded that each of the four benefit cap levels should be increased in line with CPI for the year to September 2022. This means that they will increase by 10.1% from April 2023. The annual benefit cap levels will therefore increase as follows:

to £25,323 for couples and lone parents in London and £22,020 for the rest of Great Britain

to £16,967 for single people without children in London and £14,753 for the rest of Great Britain.

Social security is a transferred matter in Northern Ireland.

[HCWS374]