Caroline Voaden

The impact on the state sector as a result of the introduction of VAT on private school fees is being carefully considered. HM Treasury will deliver the tax changes. Further details of the government’s assessment of the expected impact will be published at the Budget. A Tax Information and Impact Note will be published alongside the Finance Bill once the independent Office for Budget Responsibility has scrutinised and certified the impacts of the final policy.

To support schools with overall costs, the department is providing almost £1.1 billion in 2024/25 through the new Core Schools Budget Grant (CSBG). This matches what the department has calculated is needed to fully fund, at a national level, the teacher pay award and the support staff pay offer in the 2024/25 financial year, over and above the available headroom in schools’ existing budgets. Guidance on the new CSBG can be found here: https://www.gov.uk/government/publications/core-schools-budget-grant-csbg-2024-to-2025.

The department understands that the picture will be different for individual schools and that funding will not always match a school’s precise costs. The formula allocates funding based on schools’ pupil numbers and their characteristics. Schools can then decide how to use this funding, including how many teachers and support staff to employ. When the department allocates grant funding for additional costs, it calculates the cost across the whole system and then adds that cost into the formula. This approach keeps funding fair. If grant funding was based on each schools’ specific teacher costs, then funding would be disproportionately allocated to the schools that already spend the most on their teachers and support staff, rather than giving every school a fair increase in their spending power.

In the case of the A303 Amesbury to Berwick Down (Stonehenge Tunnel), although the contracts were awarded, the construction had not commenced. Following the announcement to cancel the project National Highways is working with its contractors to bring ontracts to a close in a controlled manner.

In the case of the A27 Arundel bypass, although a design and build contract had been awarded, construction had not commenced and following the deferral announcement in March 2023 the contract was brought to a controlled close with limited liabilities or additional costs.

In 2022/23, 11.4 million people in 8.4 million households in Great Britain received a Winter Fuel Payment, at a total cost of £2 billion.

The Government estimates that linking entitlement to receipt of Pension Credit and other relevant DWP income-related benefits will reduce expenditure by around £1.4 billion in 2024/25 and £1.5bn in 2025/26.

Bereavement Support Payment (BSP) helps people through the immediate period following a bereavement by way of an initial lump sum followed by up to 18 monthly instalments. Where longer-term financial support is needed, benefits such as Universal Credit have been specifically designed to provide assistance with ongoing living costs. We have no current plans to change the duration of Bereavement Support Payment.

The rate of Bereavement Support Payment is reviewed on a discretionary basis as part of the annual uprating process, but there is no legal requirement to uprate it. BSP is not a cost-of-living benefit like Universal Credit, which has been increased in line with inflation. We will review the rate of Bereavement Support Payment later this year as part of the annual uprating process.

The Department funds research on health and social care through the National Institute for Health and Care Research (NIHR). The NIHR welcomes funding applications for research into any aspect of human health, including long COVID and myalgic encephalomyelitis, also known as chronic fatigue syndrome (ME/CFS). The NIHR and the Medical Research Council (MRC) are committed to funding high-quality research to understand the causes, consequences, and treatment of long COVID and ME/CFS, and are actively exploring next steps for research in these areas.

Over the last five years, the Government, through the NIHR and the MRC, has invested over £50 million into long COVID research through two specific research calls. The projects funded aim to improve our understanding of the diagnosis and underlying mechanisms of the disease, and the effectiveness of both pharmacological and non-pharmacological therapies and interventions, as well as to evaluate clinical care.

The MRC has provided £4.15 million of ME/CFS research funding since 2013, including £3.19 million jointly awarded with the NIHR for the DecodeME project, which aims to find genetic risk factors of ME/CFS to better understand the disease and ultimately to find treatments. The NIHR has committed approximately £3.9 million of programme funding over the same period.

As findings emerge from current research, we encourage researchers to apply for funding to build on and develop the newly established infrastructure, partnerships, and research capabilities. Government research funders remain available to support long COVID and ME/CFS researchers in their applications for funding.

The Government is committed to breaking down barriers to opportunity, ensuring every child has access to high-quality education, which is why we have made the tough decision to end tax breaks for private schools. This will raise revenue for essential public services, including investing in the state education system

This VAT change will not impact pupils with most acute additional needs where these can only be met in private schools, as determined by an Education and Health Care Plan in England, and equivalent processes in other nations.

Where pupils are placed in a private school because their needs cannot be met in the state sector, and they have their places funded by their Local Authority, the Local Authority will be able to reclaim the VAT they incur on these pupils’ fees. In Northern Ireland, it will be the Education Authority who fund placements in private schools and will be able to reclaim the VAT in this way.

The government will publish a Tax Information and Impact Note setting out the impacts of the changes, including the equalities impacts, alongside the Finance Bill.

The Ministry of Justice, working with the Department of Health and Social Care, is firmly committed to reducing reoffending by addressing health-related causes of offending behaviour.

Where appropriate, we are working to divert offenders with health needs out of the criminal justice system altogether, including through Liaison & Diversion services, present in all police custody suites and criminal courts in England. Community Sentence Treatment Requirements can also be used as part of community or suspended sentences. Previous research has shown reduced reoffending rates for these types of sentences compared to short custodial sentences, and we are working to evaluate their use.

For those in prison, we work in close partnership with NHS England, who are responsible for commissioning healthcare services, including drug treatment, in all English prisons, so that all prisoners have access to health care equivalent to that in the community. We also work with the Welsh Government, who are ultimately responsible for commissioning and delivering health services for people in prison in Wales. We also work in partnership to ensure that our prisons provide wider support to help prisoners engage with treatment. 80 prisons currently have Incentivised Substance Free Living units where prisoners commit to regular drug tests.

We also want to better support rehabilitation of prisoners leaving custody, who have engaged in treatment and help them to remain in treatment on release. NHS England’s RECONNECT service supports prison leavers with vulnerabilities including mental health and substance misuse needs to engage with services through referrals and peer support.

I want to acknowledge the valuable work that the third sector does in supporting the work of the Department. Officials meet regularly with the third sector to discuss mutual areas of interest.

To provide services that are best value for money, responsive to local need, and fit for purpose, it is important that organisations of all sizes can participate in contracts.

HMPPS is working to encourage and facilitate participation of voluntary community and social enterprises in the justice system, by simplifying contracting processes for lower value contracts to make them more accessible for third sector organisations. There is ongoing work to support and upskill the sector in the bidding process.

Furthermore, as part of our planning to recommission current services, we are engaging with interested parties, including current and potential suppliers, the third sector, prison and probation staff, and people in prison and on probation to support the commissioning and design of future services.

The role of the Probation Service is crucial in protecting the public, turning offenders’ lives around, and providing a path of reintegration into the community to ultimately break the cycle of reoffending. The Probation Service works collaboratively with many partner organisations across the criminal justice system – police forces, local authorities, health providers, the third sector, and others – to drive down offending and keep our streets safe.

There are already great examples of partnership working between HMPPS and others. For example, in Greater Manchester, HMPPS’s temporary accommodation provision is delivered in partnership between HMPPS and the Greater Manchester Combined Authority, to improve efficiency and outcomes. We will continue to encourage and facilitate participation of partners to ensure the services provided are fit for purpose and meet local needs.

The Probation Service has a crucial role in protecting the public and providing a path of reintegration into the community to break the cycle of reoffending. The Service delivers these goals by working closely with local partners – such as police forces, local authorities, and third sector organisations, amongst others. The Government is committed to learning from successful examples of local partnerships and support the whole service to improve join-up and deliver better outcomes.

Information on the average annual cost per prisoner, cost per prison place and overall prison unit cost for each private and public sector prison in England and Wales is published by His Majesty’s Prison and Probation Service (HMPPS) after the end of each financial year on the gov.uk website.

The overall average cost for running a prison place for a year (per prison place) in 2022-23 was £51,724. This information can also be found through the following link: https://www.gov.uk/government/publications/prison-performance-data-2022-to-2023.

The Ministry of Justice expects the 2023-24 Prison Unit Cost data to be published in December 2024, once the 2023-24 HMPPS Annual Report & Accounts have been published.

The average cost to the Probation Service in 2023-24 of an additional person on the probation licence caseload (including probation pre-release costs) was estimated at c.£4,500 compared with c.£3,150 for an additional person on the probation court order caseload (community orders and suspended sentence orders). This can be found through the following link: https://assets.publishing.service.gov.uk/media/65537c7d50475b000dc5b590/Sentencing_Bill_-_IA_-_HDC.pdf.

Note that the costs presented exclude some costs to the Ministry of Justice, such as the costs of building prisons, costs not directly tied to changes in probation caseload and MoJ HQ costs.