Asked by: Baroness Maclean of Redditch (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the impact of increases to employer National Insurance contributions on the ability of businesses to create entry level jobs for young people currently not in education, employment or training.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to employer NICs, which is available online at: https://www.gov.uk/government/publications/changes-to-the-class-1-national-insurance-contributions-secondary-threshold-the-secondary-class-1-national-insurance-contributions-rate-and-the-empl. The TIIN set out the impact of the policy on the exchequer, the economic impacts of the policy, and the impacts on individuals, businesses, and civil society organisations, as well as an overview of the equality impacts.
The Office for Budget Responsibility also published the Economic and Fiscal Outlook (EFO) in November 2025, which sets out a detailed forecast of the economy and public finances. The OBR expects that employment levels will rise in every year of the forecast, and that they will be higher in every year compared to March, reaching 35.5m in 2030-31.
The government is committed to supporting young people to earn and learn; that is why we are making more than £1.5 billion available over the Spending Review period for investment in employment and skills support. This includes £820 million for the Youth Guarantee, which features a new Jobs Guarantee that will provide six-month paid work placements for eligible 18- to 21-year-olds, and £725 million for the Growth and Skills Levy, to help support apprenticeships for young people and fully fund SME apprenticeships for eligible people under-25. This support will provide an opportunity for young people to gain the essential skills and experience they need and prevent the damaging effects of long-term unemployment.
Asked by: Max Wilkinson (Liberal Democrat - Cheltenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of student loan repayment thresholds, tax thresholds and fiscal drag on incentives to work for people with plan 2 student loans.
Answered by James Murray - Chief Secretary to the Treasury
The Government is making fair and necessary choices on tax so it can deliver on the public’s priorities. Everyone is being asked to contribute to support these goals, but the Government is keeping the contribution as low as possible by pursuing a programme of reform to fix longstanding issues in the tax system – modernising it, and addressing unequal and unfair treatment, while ensuring the wealthiest contribute more.
Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what comparative assessment her Department has made of the impact of the High Income Child Benefit Charge threshold on single-earner and two-earner households.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The High Income Child Benefit Charge (HICBC) applies to Child Benefit recipients, or their partner, who has an adjusted net income of £60,000 or more. An individual’s adjusted net income is their total taxable income before any Personal Allowances and less certain tax reliefs.
The HICBC threshold was increased to £60,000 in April 2024, which took 170,000 families out of paying this tax charge in 2024/25. The point at which Child Benefit is fully withdrawn was also raised to £80,000. The HICBC threshold was £50,000 prior to 6 April 2024.
The adjusted net income threshold of £60,000 ensures the Government supports the majority of Child Benefit claimants, whilst keeping welfare expenditure sustainable.
HICBC is calculated on an individual rather than a household basis, in line with other income tax policy. In the Autumn Budget 2024, the Chancellor announced that there are no current plans to change to a system where HICBC is calculated on a household income basis, as it is estimated this would cost up to £1.4 billion or would require some families currently in receipt of Child Benefit and outside the scope of the tax charge to lose out.
As with all elements of tax policy the Government keeps HICBC under review as part of its Budget process.
Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to review the income threshold for the High Income Child Benefit Charge.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The High Income Child Benefit Charge (HICBC) applies to Child Benefit recipients, or their partner, who has an adjusted net income of £60,000 or more. An individual’s adjusted net income is their total taxable income before any Personal Allowances and less certain tax reliefs.
The HICBC threshold was increased to £60,000 in April 2024, which took 170,000 families out of paying this tax charge in 2024/25. The point at which Child Benefit is fully withdrawn was also raised to £80,000. The HICBC threshold was £50,000 prior to 6 April 2024.
The adjusted net income threshold of £60,000 ensures the Government supports the majority of Child Benefit claimants, whilst keeping welfare expenditure sustainable.
HICBC is calculated on an individual rather than a household basis, in line with other income tax policy. In the Autumn Budget 2024, the Chancellor announced that there are no current plans to change to a system where HICBC is calculated on a household income basis, as it is estimated this would cost up to £1.4 billion or would require some families currently in receipt of Child Benefit and outside the scope of the tax charge to lose out.
As with all elements of tax policy the Government keeps HICBC under review as part of its Budget process.
Asked by: Luke Evans (Conservative - Hinckley and Bosworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make it her policy to ensure that pensioners are not required to file self-assessment tax returns for small amounts after the new state pension exceeds the tax-free allowance in 2027.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
Pensioners whose sole income is the basic or new State Pension without any increments will not pay income tax in 2026-27.
At Budget 2025, the Government announced that it will ease the administrative burden for pensioners whose sole income is the basic or new State Pension without any increments so that they do not have to pay small amounts of tax via Simple Assessment from 2027-28.
The Government will set out more detail in due course.
Asked by: Manuela Perteghella (Liberal Democrat - Stratford-on-Avon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of changes to employer National Insurance contributions on employment levels in (a) the voluntary sector, (b) charities and (c) heritage organisations.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government recognises the important role charities play in our society and has made it a priority to reset the relationship with civil society by developing the Civil Society Covenant.
A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to employer National Insurance contributions. The TIIN set out the impact of the policy on the exchequer, the economic impacts of the policy, and the impacts on individuals, businesses, civil society organisations, as well as an overview of the equality impacts.
The Office for Budget Responsibility also published the Economic and Fiscal Outlook (EFO), which set out a detailed forecast of the economy and public finances.
Asked by: Joe Robertson (Conservative - Isle of Wight East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, under the proposed pay-per-mile road charging scheme, whether mileage accrued by UK-registered vehicles while driving in the Republic of Ireland would be subject to UK charges; and whether mileage accrued by Republic of Ireland-registered vehicles while driving in Northern Ireland would be subject to any equivalent charge.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
As announced at Budget 2025, the Government is introducing Electric Vehicle Excise Duty (eVED) from April 2028, a new mileage charge for electric and plug-in hybrid cars, recognising that EVs (electric vehicles) contribute to congestion and wear and tear on the roads but pay no equivalent to fuel duty. As with VED, eVED will apply to UK-registered vehicles; non-UK registered vehicles will be required to register for eVED after a period of six months in the UK.
The Government has ruled out charging tax based on when or where people drive to protect motorists’ privacy. This means non-UK mileage driven by UK registered cars will fall into scope of eVED, as with fuel duty, which does not vary by basis of where a car is driven.
Asked by: Roz Savage (Liberal Democrat - South Cotswolds)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many people in receipt of a pre-April 2016 State Pension have become liable for Income Tax since the freeze in the Income Tax personal allowance threshold.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
Revenue estimates from, and individuals impacted by frozen thresholds are set out by the Office for Budget Responsibility in Table A of their November 2025 Economic and fiscal outlook, and Table 3.19 of the detailed forecast table of receipts:
Office for Budget Responsibility – Economic and fiscal outlook – November 2025
Office for Budget Responsibility - Economic and fiscal outlook detailed forecast tables: receipts
Those whose sole income is the basic or full new State Pension without any increments will not pay any income tax in 2026/27.
Asked by: Roz Savage (Liberal Democrat - South Cotswolds)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many pre-April 2016 state pensioners have been issued with simple assessment tax demands in each of the last three tax years.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
Revenue estimates from, and individuals impacted by frozen thresholds are set out by the Office for Budget Responsibility in Table A of their November 2025 Economic and fiscal outlook, and Table 3.19 of the detailed forecast table of receipts:
Office for Budget Responsibility – Economic and fiscal outlook – November 2025
Office for Budget Responsibility - Economic and fiscal outlook detailed forecast tables: receipts
Those whose sole income is the basic or full new State Pension without any increments will not pay any income tax in 2026/27.
Asked by: Gregory Campbell (Democratic Unionist Party - East Londonderry)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will she hold discussions with the Northern Ireland Executive on the potential impact of Making Tax Digital on home-based childcare providers in Northern Ireland.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HM Treasury ministers and officials engage regularly with the Northern Ireland Executive.
Childminders play a vital role in childcare. The Government has eased rules on working from schools and community centres and increased early years funding rates above 2023 average fees. These increases reflect increased costs, and from April 2026, local authorities must pass at least 97 per cent of funding to providers.
Only a small proportion of childminders with qualifying income over £50,000 will be mandated into Making Tax Digital (MTD) for Income tax from April 2026. The government will monitor the impact of Making Tax Digital (MTD) for Income tax on childminders and other home-based childcare providers in the same way as it will for all sole traders moving to MTD for Income Tax.
Childminders can continue to claim tax relief for wear and tear by deducting the actual cost of buying, repairing or replacing items. They can also deduct the cost of business expenses such as utilities, cleaning and equipment. This ensures childminders receive tax relief for all of the costs that they incur in relation to their childminding business.