Asked by: Gregg McClymont (Labour - Cumbernauld, Kilsyth and Kirkintilloch East)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, whether he plans to privatise HM Revenue and Customs Debt Management and Banking operations; and if he will make a statement.
Answered by David Gauke
HM Revenue and Customs (HMRC) has no plans to privatise its Debt Management and Banking (DMB) Operations.
HMRC has been using debt collection services provided by private sector suppliers for several years. This has given HMRC additional capacity to complement its in house operations and increase the flexibility of its business operations, with Debt Collection Agencies (DCAs) working alongside in house debt collection activity.
HMRC plans to continue to use private sector services - the overall aim being to strengthen further HMRC's debt collection service, making optimal use of both internal and external collection specialists.
In the future, HMRC will purchase those externally provided services through the Debt Market Integrator (DMI), a Cabinet Office led initiative to create a “one stop shop” for all government departments to access a range of private sector debt collection services.
Asked by: Gregg McClymont (Labour - Cumbernauld, Kilsyth and Kirkintilloch East)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, how many people made the maximum allowed contribution to an ISA in each of the last three years; and how many he estimates will do so in each of the next three years as a result of changes announced in the 2014 Budget.
Answered by David Gauke
HM TREASURY
Gregg McClymont MP
CUMBERNAULD, KILSYTH AND KIRKINTILLOCH EAST
To ask Mr Chancellor of the Exchequer, how many people made the maximum allowed contribution to an ISA in each of the last three years; and how many he estimates will do so in each of the next three years as a result of changes announced in the 2014 Budget. 195422
DAVID GAUKE
In 2010-11, around 1.2 million individuals made full use of their (£10,200) ISA allowance. Figures for more recent years are not yet available.
As announced at Budget 2014, from 1 July 2014 the overall annual New ISA subscription limit will be increased to £15,000 and can be used for either cash or stocks and shares investments, or any combination of the two, up to this limit. Over 6 million people are expected to benefit from these increases, including over 5 million adults currently making full use of the cash ISA limit.
Estimates of the numbers of individuals expected to save at the new limit in each of the next three years are not available.
Asked by: Gregg McClymont (Labour - Cumbernauld, Kilsyth and Kirkintilloch East)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, if he will publish an impact assessment of planned changes to pensions from 2015 as announced in the 2014 Budget.
Answered by David Gauke
HM TREASURY
MP Gregg McClymont MP
CUMBERNAULD, KILSYTH AND KIRKINTILLOCH EAST
To ask Mr Chancellor of the Exchequer if he will publish an impact assessment of planned changes to pensions from 2015 as announced in the 2014 Budget 195423
DAVID GAUKE
The expected Exchequer impacts over the forecast period of the changes made to private pensions taxation as announced at Budget 2014 were included in the Taxes Information and Impact Note “Increasing Pension Flexibility” published on 19 March 2014 and can be found in Table 2.1 (p.56) of the Red Book.
The Treasury announced in paragraph 1.13 of “Freedom of Choice in Pensions” that “it intends to publish draft legislation for a short technical consultation prior to the introduction of the legislation that will enact the changes from April 2015”. A consultation impact assessment will be published alongside this draft legislation.
Asked by: Gregg McClymont (Labour - Cumbernauld, Kilsyth and Kirkintilloch East)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what estimate he has made of the minimum income per annum required during an individual's working life to prevent the need to claim means-tested benefits in retirement.
Answered by Steve Webb
No such estimate has been made.
The single-tier pension will be set above the level of the Standard Minimum Guarantee for a single person. This means that for people reaching State Pension age from April 2016 onwards, anyone who has built up 35 qualifying years through National Insurance contributions and credits should have an income above the level of the basic means test, regardless of how much they earned during their working life.
Some pensioners will still require means-tested support, and at a given level of retirement income an individual's eligibility will depend on a number of factors. These include the level and nature of their housing costs, whether they are single or in a couple, whether they have additional needs associated with caring or severe disability and whether they reached State Pension age before or after the introduction of the single-tier pension.
Whether or not a particular salary level in working life would lead to an income in retirement that is high enough to avoid eligibility for any means-tested benefits will also depend on the choices an individual makes, including how much of their income to save for retirement.
Asked by: Gregg McClymont (Labour - Cumbernauld, Kilsyth and Kirkintilloch East)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what comparative analysis he has carried out of the effects of the changes to pensions set out in the 2014 Budget on men and women.
Answered by David Gauke
HM TREASURY
Gregg McClymont MP
CUMBERNAULD, KILSYTH AND KIRKINTILLOCH EAST
To ask Mr Chancellor of the Exchequer, what comparative analysis he has carried out of the effects of the changes to pensions set out in the 2014 Budget on men and women. [195427]
DAVID GAUKE
At Budget 2014 the Chancellor announced changes which increase the flexibility of pensions, some of which took effect on 27th March 2014.
The increases to the small pot and trivial commutation limits are believed to benefit women proportionately more than men, as they are more likely to have smaller pension wealth. Reducing the minimum income requirement for flexible drawdown is also expected to have a disproportionate impact on women, as they are less likely to have a large pension pot than men.
HMRC's Tax Information and Impact Note presents further information on the estimated impacts of the 2014 changes:
The proposed 2015 changes will enable individuals to access their defined contribution pension savings as they wish at the point of retirement, subject to their marginal rate of income tax (rather than the current 55% charge for full withdrawal). The changes the Government proposes will entitle everyone to full flexibility regardless of their gender.
Asked by: Gregg McClymont (Labour - Cumbernauld, Kilsyth and Kirkintilloch East)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, how many people have been issued demand notices for unpaid tax in each of the last five years.
Answered by David Gauke
HMRC does not hold data on the total number of letters issued demanding payment of an established and overdue tax debt over the last five years.
Asked by: Gregg McClymont (Labour - Cumbernauld, Kilsyth and Kirkintilloch East)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, how many people have been issued demand notices for unpaid tax since the introduction of the £50,000 maximum tax relief on pensions contributions in April 2011.
Answered by David Gauke
HMRC does not hold data on the total number of letters issued demanding payment of an established and overdue tax debt since April 2011. Each taxpayer with an established and overdue debt may receive several letters requesting payment.
Asked by: Gregg McClymont (Labour - Cumbernauld, Kilsyth and Kirkintilloch East)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what plans he has to amend rules on the deliberate deprivation of capital used in the means test for social care funding as a consequence of the planned changes to pensions from 2015.
Answered by David Gauke
This measure fundamentally changes the way that people can access their retirement savings, and so depending on the decisions they make, people may increase or decrease their chances of being eligible for means tested services at some point in their retirement. We will ensure that the relevant guidance, including where necessary the guidance on deliberate deprivation of capital, is updated before the new flexibilities are implemented in April 2015.
Asked by: Gregg McClymont (Labour - Cumbernauld, Kilsyth and Kirkintilloch East)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what steps he plans to take to prevent private sector companies providing incentives for their employees to switch from defined benefit to defined contribution pension arrangements.
Answered by Steve Webb
We already have powers in place to legislate to ban cash incentive transfers. The incentive exercises code of good practice was created in 2012, and set out seven key principles that pension providers and their advisers must adhere to if they wish to offer their members incentives, including ensuring that members are given sufficient information to enable them to make an informed decision.
A large number of providers and independent financial advisers have signed up to the code, delivering a prompt solution to address this issue. The Government would encourage all providers to comply with the code.
Following the Budget announcement HM Treasury are currently running a consultation, “Freedom of Choice in Pensions” where it is considering whether people with a defined benefit pension should be allowed to transfer their accrued benefits into a defined contribution scheme. The outcome of this consultation will inform our thinking on what additional action, if any, the Government should take to restrict or ban pension providers from offering incentives
Asked by: Gregg McClymont (Labour - Cumbernauld, Kilsyth and Kirkintilloch East)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what assessment he has made of the effect of the planned changes to pensions on retirement incomes from private and workplace pensions.
Answered by Steve Webb
The government believes people should be trusted to make their own choices about how to use their savings to fund their retirement. These measures fundamentally change the way that people can access their retirement savings, and therefore people are free to vary the mix of income and capital they hold in retirement.
Alongside these changes, the government is taking measures to ensure everyone approaching retirement is aware of the choices they have. Pension providers and schemes will be required, by April 2015, to offer all individuals retiring with a defined contribution pension pot free and impartial face-to-face guidance on their retirement choices.