Asked by: Janet Daby (Labour - Lewisham East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the number of people who have been affected by the loan charge.
Answered by Nigel Huddleston - Shadow Financial Secretary (Treasury)
In September 2023, HM Revenue and Customs published an updated issue briefing on disguised remuneration and the loan charge. The issue briefing contains information at UK level and is available on GOV.UK here:
Asked by: Janet Daby (Labour - Lewisham East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when she plans to respond to the correspondence of (a) 24 November 2023 and (b) 8 January 2024 from the hon. Member for Lewisham East, case reference JD38220.
Answered by Gareth Davies - Shadow Exchequer Secretary (Treasury)
I would like to reassure the Member that her correspondence has been transferred to Cabinet Office and will be responded to shortly.
Asked by: Janet Daby (Labour - Lewisham East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has made an assessment of the potential merits of establishing an independent inquiry into the selling of disguised remuneration schemes.
Answered by Victoria Atkins - Shadow Secretary of State for Health and Social Care
As a result of the action the Government has taken to clamp down on marketed tax avoidance, the estimated tax gap from marketed avoidance sold primarily to individuals, has fallen from an estimated £1.5 billion in 2005-2006 to £0.4 billion in 2020-21.
HM Revenue and Customs (HMRC) continues to implement the actions set out in its 2020 published strategy to disrupt the activities and supply chains of promoters of tax avoidance schemes.
The Government brought in legislation in Finance Act 2021 (FA21) and in Finance Act 2022 (FA22) to enhance HMRC’s ability to tackle promoters and suppliers of tax avoidance schemes and reduce the scope for them to market such schemes.
As announced at Spring Budget 2023, the Government is consulting on two further measures to tackle promoters of tax avoidance, which build on the changes made in FA21 and FA22. These proposals reinforce the Government’s commitment to ensure promoters face tough consequences for their actions.
Asked by: Janet Daby (Labour - Lewisham East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made a recent assessment of the potential merits of reducing the rate of VAT on public charging points for electric vehicles to five per cent.
Answered by Victoria Atkins - Shadow Secretary of State for Health and Social Care
Introducing a VAT relief for public electric vehicle (EV) charging would impose additional pressure on the public finances, to which VAT makes a significant contribution.
Although there are no current plans to change the VAT treatment of electricity supplied at public EV charge points, the Government is committed to supporting the transition to zero emission vehicles to help the UK meet its net zero obligations. The Government has already spent over £2 billion to support the transition. This funding has focused on reducing barriers to the adoption of such vehicles, including offsetting their higher upfront cost and accelerating the rollout of chargepoint infrastructure.
Asked by: Janet Daby (Labour - Lewisham East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential impact of the High Income Child Benefit Charge on people eligible to pay that charge during the cost of living crisis.
Answered by Victoria Atkins - Shadow Secretary of State for Health and Social Care
The adjusted net income (ANI) threshold of £50,000 for the High Income Child Benefit Charge (HICBC) affects a small proportion of taxpayers with comparatively high incomes. HMRC data also shows that the vast majority of those liable to HICBC have incomes above the UK Higher Rate Threshold. The Government has no plans to alter the current threshold for the HICBC.
Nonetheless, the Government understands the difficulties that families across the income distribution are facing with the cost of living. That’s why have taken decisive action to support households through these challenges. For example, the Energy Price Guarantee will be extended from April 2023 until April 2024, saving the average household in Great Britain £900 over the financial year.
Asked by: Janet Daby (Labour - Lewisham East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will have discussions with Cabinet colleagues on increasing Government support for (a) fuel and (b) other costs for people with sickle cell disease during winter 2022.
Answered by John Glen - Shadow Paymaster General
The Government recognises that the rising cost of living has presented additional financial challenges to many people, and especially to the most vulnerable members of society, such as disabled people and people with long-term health conditions, like sickle cell disease. That is why the Government is taking decisive action to support households while ensuring we act in a fiscally responsible way.
At Autumn Statement 2022, the Government announced that it will provide a further Disability Cost of Living Payment of £150 in 2023/24 to people in receipt of extra-costs disability benefits such as Personal Independence Payment (PIP) or Disability Living Allowance (DLA). This is additional to the £150 payment for recipients of disability benefits in 2022 already announced as part of the Cost of Living package in May.
These payments can be received in addition to the other Cost of Living Payments for households on means-tested benefits, namely the £650 payment announced in May and the additional £900 payment announced at Autumn Statement. Individuals who have limited or no ability to work because of their disability or long-term health condition, and are in receipt of means-tested benefits such as income-related Employment and Support Allowance or the Universal Credit Health top up, are eligible for this support.
Disabled people and people with long-term health conditions such as sickle cell disease will also benefit from other forms of non-means-tested support which the Government is providing to assist with household energy bills. We have taken decisive action to support millions of households with rising energy costs through the Energy Price Guarantee, which limits the price suppliers can charge customers for units of gas and electricity. In addition to the Energy Price Guarantee, millions of the most vulnerable households will receive further support this year through the £400 Energy Bills Support Scheme. The £150 Council Tax rebate will also mean that all households in Council Tax bands A-D will receive a rebate, and 99% of eligible households have already received this.
Asked by: Janet Daby (Labour - Lewisham East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the potential impact of the projected increase in the number of electric vehicles on future revenues from Vehicle Excise Duty.
Answered by James Cartlidge - Shadow Secretary of State for Defence
The Office for Budget Responsibility (OBR) periodically forecasts the impact of increased electric vehicles on future motoring tax revenues, including Vehicle Excise Duty, as part of its Fiscal Risks and Sustainability report.
More information can be found on the OBR’s website: https://obr.uk/frs/fiscal-risks-and-sustainability-july-2022/.
The Government set out as part of its Net Zero Strategy that revenue from motoring taxes would keep pace with the transition to electric vehicles.
Asked by: Janet Daby (Labour - Lewisham East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has had discussions with Cabinet colleagues on making an assessment of the adequacy of Government support for (a) fuel and (b) other costs for people with sickle cell disease during winter 2022.
Answered by Edward Argar - Shadow Secretary of State for Justice
The Government understands that people across the UK and especially the most vulnerable members of society, such as those suffering from long-term health conditions and disabilities, are worried about the rising cost of living. That is why the Government is taking decisive action to get households through this winter and the next, while ensuring we act in a fiscally responsible way.
Depending on their specific circumstances, it is possible that people with multiple sclerosis will qualify for disability benefits. People in receipt of extra-costs disability benefits such as Personal Independence Payment (PIP) or Disability Living Allowance (DLA) will receive a one-off Disability Cost of Living Payment of £150 from 20th September, to help with the extra costs disabled people are facing. The DWP has already processed around 6 million such payments.
The Government is also providing a £650 Cost of Living Payment to recipients of means-tested benefits, to support people with low incomes with the rising cost of living. Individuals in receipt of means-tested disability benefits, such as income-related Employment and Support Allowance, or the Universal Credit Health top up are eligible for this support.
Those suffering from sickle cell disease may also benefit from other forms of non-means tested support which the Government is providing to assist with UK households’ energy bills. The Energy Price Guarantee is a scheme that will cap the unit price households pay for electricity and gas, which means that a typical household in Great Britain will have to pay bills equivalent to no more than £2500 a year on their energy bills this winter. This will support people with a disability who may need to use more energy due to their condition or treatment.
Secondly via the Energy Bills Support Scheme, which will provide £400 to help with domestic energy bills. All households in Council Tax bands A-D will also receive the Government-funded £150 Council Tax Rebate, which will be delivered by Local Authorities.
Lastly, to support households who need further help or who are not eligible for elements of the wider package of support, the Government is also providing an extra £500 million of local support to help with the cost of essentials, via the Household Support Fund.
Asked by: Janet Daby (Labour - Lewisham East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the economic impact of leaving the European Union on (a) energy prices, (b) food prices, (c) footwear prices and (d) NHS funding.
Answered by Simon Clarke
It is for the Office for Budget Responsibility to provide and publish economic and fiscal forecasting. In its March Economic and Fiscal Outlook the OBR noted that higher inflation was mainly a result of increased global goods and energy prices and a tightening labour market.
It remains challenging to separate out the effects of different events. The Bank of England has also noted that the majority of the increase in inflation since the pandemic is likely due to global factors.
The government understands that people across the UK are worried about the rising cost of living. In May, we announced over £15 billion of additional cost of living support, targeted at those with the greatest need. Government support for the cost of living now totals over £37 billion this year, equivalent to 1.5% of GDP.Asked by: Janet Daby (Labour - Lewisham East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to introduce any additional measures aimed at helping pensioners to deal with inflationary pressures.
Answered by Simon Clarke
The Government is providing £37 billion in cost of living support this year, including £15 billion in a new support package announced in late May. This includes extra support to help all pensioners stay warm this winter.
Households eligible for the Winter Fuel Payment will receive an extra one-off payment of £300, paid in November/December alongside the existing Winter Fuel Payment. Pensioners, as all domestic electricity customers, will see £400 off their bills from October with no need to repay, through the expansion of the Energy Bills Support Scheme. In addition, households in receipt of Pension Credit will receive a one-off payment of £650 in two lump sums, the first from July and the second in the autumn.
Further support for pensioners can be provided by local authorities through the Household Support Fund, which will be in place until April 2023.
Next year, the Triple Lock will apply for the State Pension. Subject to the Secretary of State’s review, pensions and other benefits will be uprated by this September’s CPI which, on current forecasts, is likely to be significantly higher than the forecast inflation rate for 2023/24.