Asked by: Lord German (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government how much has been paid in payments under the Coronavirus Job Retention Scheme in each parliamentary constituency in Wales to date.
Answered by Lord Agnew of Oulton
The value of claims split by Parliamentary Constituency is not available. The Coronavirus Job Retention Scheme provides funds to PAYE schemes to support employers to pay a proportion of the wages of furloughed staff. The registered address for PAYE schemes can be in a different area to that where their employees live and work. In addition, for PAYE schemes claiming for between 1 and 99 employments there has been no requirement to specify the amount claimed for each employment. As a consequence, it is not possible to provide reliable figures for the monetary value of the support provided by geographical area.
Asked by: Lord German (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the increase in personal debt by individuals who have lost their jobs during the COVID-19 pandemic.
Answered by Lord Agnew of Oulton
The Government works closely with the Money and Pensions Service to monitor financial difficulty through an annual survey and notes the Financial Conduct Authority’s biennial Financial Lives Survey.
The Government recognises that some people are struggling with their finances at this challenging time. To help people in problem debt get their finances back on track, an extra £37.8 million support package has been made available to debt advice providers this financial year, bringing this year's budget for free debt advice in England to over £100 million.
In May 2020, the Government announced the immediate release of £65 million of dormant assets funding to Fair4All Finance, an independent organisation that has been founded to support the financial wellbeing of people in vulnerable circumstances. The funding is used to increase access to fair, affordable and appropriate financial products and services for those in financial difficulties.
From May 2021, the Breathing Space scheme will offer people in problem debt a pause of up to 60 days on most enforcement action, interest, fees and charges, and will encourage them to seek professional debt advice.
The Government has delivered unprecedented support for living standards during this challenging time, protecting livelihoods with the Self-Employment Income Support Scheme (SEISS), the Coronavirus Job Retention Scheme (CJRS), and temporary welfare measures.
The Government has extended the CJRS until 31 March 2021. Eligible employees will continue to receive 80% of their usual salary for hours not worked, up to a maximum of £2,500 per month.
The Government has increased the overall level of the third grant under the SEISS to 80% of average trading profits, meaning that the maximum grant available has now increased to £7,500.
The Government has provided local authorities with £500 million to support people who may struggle to meet their council tax payments this year. The Government expects that this will provide all recipients of working age local council tax support with a further reduction in their annual council tax bill of £150 this financial year.
These measures are in addition to the changes this Government has made to make the welfare system more generous, worth over £7 billion according to recent estimates by the Office for Budget Responsibility.
The Government has worked with mortgage lenders, credit providers and the Financial Conduct Authority to ensure the financial sector provides support for people across the UK to manage their finances by providing payment holidays on mortgages and consumer credit products.
The Government has also delivered protections for renters, including an extension to the ban on bailiff evictions for all but the most egregious cases until at least 21 February 2021, with measures kept under review.
Asked by: Lord German (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the case for permitting freelance musicians to defer (1) all, or (2) part, of their income tax payments during the COVID-19 pandemic.
Answered by Lord Agnew of Oulton
Following the onset of the COVID-19 pandemic, on 20 and 26 March 2020 the Chancellor announced numerous easements to help businesses through this difficult time. This included the option for all Self-Assessment (SA) taxpayers, including the self-employed, to defer paying their second Payment on Account (POA) for the tax year 2019-20, ordinarily payable by 31 July 2020, for 6 months. All SA taxpayers, including self-employed freelance musicians, have until 31 January 2021 to make that payment without it incurring any late payment interest.
Furthermore, the Government understands that many SA taxpayers may have difficulty in paying their SA payments becoming due on 31 January 2021. To help them, HMRC have enhanced their automated online Time to Pay service, enabling taxpayers to clear their January 2021 SA liabilities in up to 12 monthly instalments.
Prior to October 2020, that service could only be used to pay tax liabilities of up to £10,000. However, HMRC increased the threshold to £30,000, to ensure it is now available to far more SA taxpayers than before. SA taxpayers eligible to use this service can set up a direct debit payment arrangement online without having to contact HMRC directly. HMRC estimate that up to 95% of SA taxpayers owing SA payments on 31 January 2021 will be able to use this online payment service.
Taxpayers with SA tax liabilities over £30,000 may still agree a Time to Pay arrangement with HMRC by contacting them directly. Further information is available on GOV.UK.