Asked by: Kim Johnson (Labour - Liverpool Riverside)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of changes to employer National Insurance contribution rates on third sector organisations; and whether she plans to provide further funding to support charities with these costs.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government recognises the important role charities play in our society, and has made it a priority to reset the relationship with civil society and build a new partnership to harness their full potential by developing a Civil Society Covenant recognising the sector as a trusted and independent partner.
Within the tax system, we provide support to charities through a range of reliefs and exemptions, including reliefs for charitable giving. The tax reliefs available to charities are a vital element in supporting charitable causes across the UK, with more than £6 billion in charitable reliefs provided to charities, CASCs and their donors in 2023 to 2024.
To repair the public finances and help raise the revenue required to increase funding for public services, the government has taken the difficult decision to increase employer National Insurance.
The Government recognises the need to protect the smallest businesses and charities, which is why we have more than doubled the Employment Allowance to £10,500, meaning more than half of employers with NICs liabilities either gain or see no change next year. Charities will still be able to claim employer NICs reliefs including those for under 21s and under 25 apprentices, where eligible.
The Government has committed to provide support for departments and other public sector employers for additional Employer NICs costs only. This is the usual approach the Government takes to supporting the public sector with additional Employer NICs costs, as was the case with the previous Government’s Health and Social Care Levy.
Asked by: Kim Johnson (Labour - Liverpool Riverside)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the report by the Parliamentary and Health Service Ombudsman entitled Women’s State Pension age: our findings on injustice and associated issues, published on 21 March 2024, HC 638, what discussions she has had with the Secretary of State for Work and Pensions on that report.
Answered by Darren Jones - Chief Secretary to the Treasury
This is a serious report, requiring serious consideration. The Department for Work and Pensions is the lead department for this and need time to carefully review and consider it.
Once this work has been undertaken, the Government will set out their approach.
Asked by: Kim Johnson (Labour - Liverpool Riverside)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will take steps to discourage banks regulated in the UK from supporting businesses which receive income from industrial livestock companies contributing to deforestation.
Answered by Bim Afolami
The Government is committed to working with UK financial institutions to further tackle deforestation-linked finance.
On 9 December at COP28 Nature Day, the Government announced the next steps on the Forest Risk Commodities Scheme which will be introduced through provisions under the Environment Act 2021. This new due diligence legislation will see businesses that have a global annual turnover of over £50 million and use over 500 tonnes of regulated commodities a year banned from using them if sourced from land used illegally.
As set out in the Financial Services and Markets Act 2023, HM Treasury will also conduct a review to assess if the financial regulatory framework is adequate for the purpose of eliminating the financing of illegal deforestation, and to consider what changes to the regulatory framework may be appropriate.
Asked by: Kim Johnson (Labour - Liverpool Riverside)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made with Cabinet colleagues of the potential impact of (a) a reduction in public expenditure and (b) the cost of living crisis on children in food poverty.
Answered by John Glen
The Chancellor makes regular assessments on the impact of public expenditure on services and policies in the UK.
At the Autumn Statement, the Chancellor has taken a responsible and disciplined approach to spending whilst prioritising vital public services and the most vulnerable. Over the Spending Review period, overall departmental spending will continue to grow after inflation. This includes an additional [£2.3bn] of funding in 2023-24 and [£2.3bn] in 2024-25 for schools.
The Government also understands that people across the UK are worried about the rising cost of food, which is why we remain committed to supporting children including through:
This Government has also announced £37bn of support for cost of living this financial year, including a Cost of Living payment of £650 to households on means-tested benefits, with extra support for pensioners and those claiming disability benefits, and £500m to continue the Household Support Fund for a further 6 months, to allow Local Authorities to help the most in need.
Asked by: Kim Johnson (Labour - Liverpool Riverside)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 21 June 2021 to Question 16027 on Equitable Life Assurance Society, for what reasons the Government does not plan to (a) reopen the Equitable Life Payment Scheme or (b) review the £1.5 billion funding allocation previously made to it.
Answered by John Glen
Since 2010, the government has taken more action to resolve this issue than ever was taken previously, including setting up a payment scheme to make payments of up to £1.5bn to eligible policyholders. Since the Scheme closed in 2016, the Government’s position on this issue has been clear, that there will be no further funding in addition to the £1.5bn and this issue is considered closed.
The methodology for calculating payments to Equitable Life policyholders was published in 2011 and can be found at: www.gov.uk/government/publications/equitable-life-payment-scheme-design.
Asked by: Kim Johnson (Labour - Liverpool Riverside)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will publish the calculations, including the intermediary steps, used in determining payments made under the Equitable Life Payment Scheme.
Answered by John Glen
Since 2010, the government has taken more action to resolve this issue than ever was taken previously, including setting up a payment scheme to make payments of up to £1.5bn to eligible policyholders. Since the Scheme closed in 2016, the Government’s position on this issue has been clear, that there will be no further funding in addition to the £1.5bn and this issue is considered closed.
The methodology for calculating payments to Equitable Life policyholders was published in 2011 and can be found at: www.gov.uk/government/publications/equitable-life-payment-scheme-design.
Asked by: Kim Johnson (Labour - Liverpool Riverside)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he plans to take in 2022 to help people affected by the Equitable Life scandal.
Answered by John Glen
Since 2010, the government has taken more action to resolve this issue than ever was taken previously, including setting up a payment scheme to make payments of up to £1.5bn to eligible policyholders. Since the Scheme closed in 2016, the Government’s position on this issue has been clear, that there will be no further funding in addition to the £1.5bn and this issue is considered closed.
The methodology for calculating payments to Equitable Life policyholders was published in 2011 and can be found at: www.gov.uk/government/publications/equitable-life-payment-scheme-design.
Asked by: Kim Johnson (Labour - Liverpool Riverside)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the upcoming expiration of his Department’s contract with Capita for the administration of the Equitable Life Payments Scheme, if he will confirm that future awardees of the contract will be subject to the same contractual requirement to hold, in a searchable format, the personal, bank account and payment data for all those non-WPA (With Profits Annuitants) Equitable Life policyholders who have already received a payment from that scheme.
Answered by John Glen
I refer the Honourable Member to the answer I gave to PQ UIN67299 on 9th November.
Asked by: Kim Johnson (Labour - Liverpool Riverside)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will ensure that, following the upcoming expiration of his Department’s contract with Capita for the administration of the Equitable Life Payments Scheme, that future awardees of the contract will be subject to the same contractual requirement to hold, in a searchable format, the personal, bank account and payment data for all non-With Profits Annuitants Equitable Life policyholders, who have already received a payment from the Scheme.
Answered by John Glen
HM Treasury has extended its contract with Capita for the administration of the Equitable Life Payment Scheme until 15 November 2023. The service requirements will naturally be reviewed when the service is re-procured.
The contract is published on the Contracts Finder website and is available at the following link:
Asked by: Kim Johnson (Labour - Liverpool Riverside)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether, if he will extend the Coronavirus Job Retention Scheme registration date beyond 31 October 2020 to cover those workers taken on as covid-19 tier restrictions were relaxed but were subsequently let go without furlough payments from 30 December 2020.
Answered by Jesse Norman - Shadow Leader of the House of Commons
Throughout the pandemic, the Government has moved the cut-off date for the Coronavirus Job Retention Scheme when possible, bringing millions of people into the scope of the scheme who were previously ineligible. For claim periods under the extension from 1 May 2021, as announced at Budget, the Government has extended the eligibility window so that it will run from 20 March 2020 until 2 March 2021. Based on early estimates, this means that about 2.4 million more jobs are eligible for the scheme.
However, for all eligibility decisions under the CJRS, the Government balances the need to support as many people as possible with the need to protect the scheme from fraud. The 30 October 2020 cut-off date is necessary for claims relating to the period from 1 November 2020 to 30 April 2021, because having a cut-off date on the day before an announcement of an extension to the CJRS allows as many people as possible to be included, while balancing the risk of fraud that exists as soon as the forward plan becomes public.
The CJRS is only one part of the substantial package of support that the Government has introduced for businesses and individuals.