Asked by: Baroness Lister of Burtersett (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what steps they intend to take to ensure that young people do not lose track of their investments in Child Trust Funds.
Answered by Baroness Penn
HMRC has worked closely with Child Trust Fund (CTF) providers, the wider industry and the Money and Pensions Service to ensure that young people are aware of, and can access, their CTFs.
HMRC has:
Children with maturing CTFs also receive a significant amount of written information pertaining to their account directly from their account provider.
The government is committed to helping people access the savings and money they are entitled to and continues to explore new routes to reunite young people with their Child Trust Funds.
Asked by: Baroness Lister of Burtersett (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what is their estimate of the number of adults (1) in paid work, and (2) not in paid work, who have incomes below the income tax threshold.
Answered by Baroness Penn
Estimates of the number of adults in paid work and not in paid work who have incomes below the Income Tax Personal Allowance during the 2019-20 tax year, the latest year for which these figures are available, are set out below.
| Estimated number of adults in 2019-20 (millions) |
Paid work | 10.2 |
Not in paid work | 6.7 |
Total | 16.9 |
Source: Survey of Personal Incomes, tax year 2019 to 2020
The Income Tax Personal Allowance for the 2019-20 tax year is £12,500. The adult population (individuals aged 18 and over) in paid work is based on individuals with employment and/or self-employment income. Other income amounts such as occupational or State pension is not included as paid work but individuals with incomes such as pensions could be in either category. The data underlying the Survey of Personal Incomes is based on a large sample of over 820,000 individuals with incomes reported to HMRC. As is the case with the published Personal Incomes Statistics, these figures are statistical estimates and will be subject to sampling variation.
Asked by: Baroness Lister of Burtersett (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the report by the Office of Tax Simplification OTS evaluation note: Update on OTS work on the High Income Child Benefit Charge and its wider implications, published on 1 March; and in particular, (1) the criticisms of the progress on recommendations made to improve the working of the high income child benefit charge, and (2) the further recommendations contained in that report.
Answered by Baroness Penn
The High Income Child Benefit Charge (HICBC) ensures that support for families is targeted at those who need it most. The Government is grateful to the Office of Tax Simplification (OTS) for their suggestions for how the individual’s experience of child benefit and HICBC could be improved.
The OTS acknowledge that HMRC has made progress following their “Simplifying everyday tax for smaller businesses” and “Life events review: simplifying tax for individuals” reports from 2019, including by improving the child benefit form to ensure that it is clear that the form should be completed, even where the parents may wish to opt out of getting child benefit payments. HMRC has also undertaken customer research to explore child benefit claimants’ understanding of HICBC, benefits of claiming and the reasons why some do not make a claim.
HMRC has also taken considerable steps to raise awareness of HICBC. It currently shares information via social media, through third parties such as websites aimed at parents or families, and on GOV.UK. HMRC also writes to around 70,000 customers each year to remind them what they need to do to pay HICBC.
The OTS’ findings will continue to inform HMRC’s ongoing work.
Asked by: Baroness Lister of Burtersett (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government how many claimants are in receipt of (1) Working Tax Credit, and (2) Child Tax Credits.
Answered by Lord Agnew of Oulton
As at 2 December 2020, the latest published statistics, there were 1.99 million families in receipt of Child Tax Credit (CTC) and/or Working Tax Credit (WTC).
Of this figure, approximately:
These figures are published in HMRC’s latest provisional tax credits awards statistics published on 26 February 2021[1]. These provided a snapshot of awards in December 2020.
Finalised awards statistics are also published once a year, showing an average position for the entire year after tax credits awards have been finalised[2].
Asked by: Baroness Lister of Burtersett (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what steps they have taken to meet their obligation under the Public Sector Equality Duty to have due regard to the impact of the 2021 Budget, published on 3 March, on equality; and whether they intend to publish an equality impact assessment of the 2021 Budget.
Answered by Lord Agnew of Oulton
The measures at Budget 2021, such as the continuation of the measures to respond to the impact of COVID-19, will support many people across society and promote this government’s belief in fairness. The Treasury carefully considers the impact of its decisions on those sharing protected characteristics, including at Budgets and other fiscal events, in line with both its legal obligations and with its strong commitment to promoting fairness. At Budget 2021, Ministers have paid such due regard to the equalities implications of their decisions and these decisions have been announced to Parliament. In interests of transparency we publish impacts in summary form for tax measures in tax information and impact notes (TIINs) alongside Finance Acts.
Asked by: Baroness Lister of Burtersett (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the letter sent by Carers UK to the Chancellor of the Exchequer on 3 February, and of the proposal that a £20 supplement to the Carer’s Allowance be made in the Budget to support carers during the COVID-19 pandemic.
Answered by Lord Agnew of Oulton
This Government continues to protect the value of benefits paid to carers whilst also spending record amounts in real terms. The level of Carer’s Allowance is protected by uprating it each year in line with the Consumer Price Index (CPI). The purpose of benefit uprating is to ensure that the value of benefits stays in line with the general level of prices. For the April 2021 increase, the Department for Work and Pensions used the September 2020 CPI, which was 0.5 per cent. Since 2010, the rate of Carer’s Allowance has increased from £53.90 to £67.25 a week, meaning around an additional £700 a year for carers. Between 2020/21 and 2025/26 real terms expenditure on Carer’s Allowance is forecast to increase by nearly a third (around £1 billion). By 2025/26, the Government is forecast to spend just over £4 billion a year on Carer’s Allowance.
In addition, Carer’s Allowance isn’t the only benefit available to carers. Carers have access to the full range of social security benefits depending on their individual circumstances. Income replacement benefits help individuals and households on lower incomes, and can include a carer premium, which is currently £37.50 a week. An equivalent additional amount applies in Pension Credit. Universal Credit also includes a carer element at the rate of £162.92 per monthly assessment period. These amounts recognise the additional contribution and responsibilities associated with caring and mean that lower-income carers can receive more money than others who receive these benefits.
Asked by: Baroness Lister of Burtersett (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the impact on low income consumers of the Financial Conduct Authority’s decision to close down Wirecard's operations on 26 June; and what steps they plan to take to protect anyone without access to resources as a result of that decision. [T]
Answered by Lord Agnew of Oulton
Wirecard AG, the German payments provider, entered administration last week. It has a UK subsidiary, Wirecard Card Solution Ltd (Wirecard UK), which is FCA regulated. This subsidiary is not in administration.
Last week, the FCA temporarily applied restrictions to Wirecard UK’s business while the firm ensured it could safeguard customers’ money. The government worked closely with the FCA to understand and mitigate the impact of this measure – for example, the DWP worked to ensure those who received benefits into accounts using Wirecard UK had an alternate means of receiving payments.
The firm has now been able to demonstrate that it has met the necessary conditions, and the restrictions were lifted on Tuesday 30 June. Customers can access their money as usual.
Asked by: Baroness Lister of Burtersett (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government, further to the Written Answer by Lord Agnew of Oulton on 22 June (HL5695), what financial support will be made available to people who do not have COVID-19 but are required to self-isolate under the COVID-19 contact test and trace system who are unable to work from home; and what consideration they have given to including such people as eligible for the Coronavirus Job Retention Scheme. [T]
Answered by Lord Agnew of Oulton
The Government has committed to an unprecedented package to support individuals through this difficult time. This includes the introduction of the Coronavirus Job Retention and Self-Employment Income Support Schemes, as well as through injecting an additional £8bn into the welfare system.
For employees unable to work from home, DWP has laid new regulations to ensure that people asked to isolate by the Test and Trace service will be eligible for Statutory Sick Pay (SSP). This is in addition to changes already made which make SSP payable from day one rather than day four of an absence from work. Employees will still be entitled to claim SSP from their employer even if they are asked to self-isolate several times. A SSP Rebate Scheme was also announced at Budget to support SMEs which may face a financial strain due to staff absences caused by COVID-19.
Self-employed people are eligible for “new style” Contributory Employment and Support Allowance (ESA) if they are incapable of work due to COVID-19, including all those who are required to self-isolate according to Government guidance. The Government has made it easier for people to claim by removing the seven-day waiting period, which means people can get support from day one.
The Government is committed to helping the lowest paid through the coronavirus outbreak, and the welfare system is best placed to provide this support.
Asked by: Baroness Lister of Burtersett (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what financial support will be made available to people required to self-isolate under the COVID-19 contact test and trace system who are unable to work from home; and what consideration they have given to including such people as eligible for the Coronavirus Job Retention Scheme. [T]
Answered by Lord Agnew of Oulton
Employees who are on sick leave or self-isolating as a result of coronavirus have access to Statutory Sick Pay subject to other eligibility conditions. The Coronavirus Job Retention Scheme is not intended for short-term absences from work due to sickness.
Asked by: Baroness Lister of Burtersett (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government whether employees on Maternity Allowance can categorise that Allowance as earnings for the purpose of calculating furlough payments.
Answered by Lord Agnew of Oulton
The Coronavirus Job Retention Scheme (CJRS) is designed to help employers whose operations have been severely affected by coronavirus (COVID-19) to keep their employees and protect the UK economy.
Under the CJRS, an employer will be entitled to claim for a grant that covers 80% of their furloughed employee’s usual monthly wage costs, up to £2,500 a month. They can also claim for the associated Employer National Insurance contributions and pension contributions, up to the level of the minimum automatic enrolment employer pension contribution, on that subsidised furlough pay.
For employees on fixed pay, claims for full or part time employees furloughed on return from family-related statutory leave should be calculated against their salary, before tax, not the pay they received while on family-related statutory leave. The same principles apply where the employee is returning from a period of unpaid statutory family-related leave.
Claims for those on variable pay, returning from statutory leave should be calculated using the highest of either: