Asked by: Rupa Huq (Labour - Ealing Central and Acton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what fiscal steps his Department is taking to help ensure that increases in the cost of living do not disproportionately impact (a) blind and (b) partially sighted people.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
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 blind or partially sighted people. That is why the Government is taking decisive and targeted action to get households through this winter, ensuring the cost of living does not disproportionately impact vulnerable households, whilst also acting in a fiscally responsible way.
People who are blind or partially sighted and in receipt of extra-costs disability benefits such as Personal Independence Payment (PIP) or Disability Living Allowance (DLA) will have received a one-off Disability Cost of Living Payment of £150 last year to help with the rising cost of living and will receive a further £150 Cost of Living Payment this year. These payments can be received in addition to the £650 Cost of Living Payment delivered in 2022/23 and the £900 payment which will be delivered in 2024/25 for households on means-tested benefits, or the two £300 Cost of Living Payments for pensioners last and this year. Individuals who have limited or no ability to work because of their disability or 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 the means-tested benefit Cost of Living Payments.
People who are blind or partially sighted 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 UK households with rising energy costs this winter and throughout next year 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 in 2022/23 through the £400 Energy Bills Support Scheme. The £150 Council Tax rebate will also mean that all households in Council Tax bands A-D in England will receive a rebate, and 99% of eligible households have already received this. Lastly, to support households who need further help or who are not eligible for elements of the wider package of support, the Government has provided £2.5bn in funding for local support to help with the cost of essentials until the end of March 2024, via the Household Support Fund.
This cost of living support is in addition to the existing specific financial support to help blind or partially sighted people. The Government provides the Blind Person's Allowance (BPA), an extra amount of tax-free allowance that can be added to an individual’s Personal Allowance, to those who are blind or severely sight impaired. In 2022/23, the allowance is £2,600 and therefore worth £520 given the basic rate of 20%. If the recipient does not pay tax or earn enough to use their full BPA, the remainder of the allowance can be transferred to a spouse or civil partner.
We are continuing to keep the situation under review and are focusing support on the most vulnerable whilst ensuring we act in a fiscally responsible way.
Asked by: Rupa Huq (Labour - Ealing Central and Acton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential merits of a review of mileage rates in the context of increases in the cost of living.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
Approved Mileage Allowance Payments (AMAPs) are used by employers for administrative ease as a means of reimbursing an employee’s expenses for business mileage in their private vehicle.
Like all taxes and allowances, the Government keeps the AMAP rate under review.
Asked by: Rupa Huq (Labour - Ealing Central and Acton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has plans to review the Approved Mileage Allowance Payments rate for the self-employed.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
Self-employed people can get tax relief for fuel and other business motoring expenses by choosing to use either the simplified mileage rate or by claiming capital allowances and actual expenses. The simplified mileage rate is intended to create administrative simplicity and certainty by using an average rate, which reflects vehicle running costs including fuel, depreciation, servicing, insurance, and Vehicle Excise Duty. As it is an average, the rate is necessarily more appropriate for some drivers than others.
As with all taxes and allowances, simplified mileage rates are kept under review and any changes are considered and announced by the Chancellor at fiscal events.
Asked by: Rupa Huq (Labour - Ealing Central and Acton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment with Cabinet colleagues of the impact of the UK-EU Trade and Cooperation Agreement on the economy.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The Trade and Cooperation Agreement is the world’s biggest zero-tariff, zero-quota trade deal. This provides a strong base for UK businesses to trade with the EU.
The Government is continuing to support businesses trading with the EU, as well as helping them seize new opportunities with fast-growing economies around the world through our Free Trade Agreement negotiations.
Asked by: Rupa Huq (Labour - Ealing Central and Acton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of reducing the VAT on domestic energy to 2.5 per cent.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The Energy Price Guarantee is a scheme that caps the unit price households pay for electricity and gas, which means that a typical household will have to pay bills equivalent to no more than £2500 a year on their energy bills this winter. This is expected to save consumers who use both gas and electricity around £900 this winter. The scheme as currently designed will last until 31 March 2023. As announced during the 2022 Autumn Statement, the EPG will increase to £3000 from April 2023 until April 2024. This new approach is expected to save around £14 billion to April 2024, ensuring fiscal sustainability, whilst targeting support to those most in need.
The Government recognises that families should not have to bear all of the VAT costs they incur to meet their needs, with domestic fuels such as gas, electricity and heating oil already subject to the reduced VAT rate (at 5 per cent of VAT). The Government's package of support to help households with their energy bills is more generous than an additional VAT cut on domestic fuel and power, and there would be no guarantee that suppliers would pass on the discounts from this relief to all customers.
Asked by: Rupa Huq (Labour - Ealing Central and Acton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of introducing a windfall tax on bank’s excess profits in a similar manner to the Energy Profits Levy.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
Banks already face two additional taxes. The Bank Corporation Tax Surcharge is an additional charge on banking profit above a set allowance, and the Bank Levy is charged on banks’ balance sheets with equity and liabilities over £20 billion. Since the introduction of the Bank Levy in 2011, these two taxes have raised over £37 billion in additional revenue from the banking sector.
Asked by: Rupa Huq (Labour - Ealing Central and Acton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has had recent discussions with HM Revenue and Customs on the potential merits of providing additional support to people affected by the loan charge.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The Government recognises that tax burdens including those related to the Loan Charge can add significant pressures.
HMRC has a well-established approach to supporting taxpayers who are struggling to pay their liabilities in full. HMRC offers taxpayers affordable and sustainable instalment arrangements based on their specific circumstances. These Time to Pay arrangements are flexible, have no maximum length and can be amended if the taxpayer’s circumstances change.
HMRC is committed to identifying and supporting taxpayers who need extra help with their tax affairs. HMRC has a dedicated telephone line for those seeking to exit a tax avoidance scheme and a debt helpline, with guidance and training in place for staff on how to identify taxpayers who need extra support.
Where appropriate, HMRC refers taxpayers to outside organisations that can provide further advice and support. In October, HMRC began piloting a new service with Samaritans to provide specialist emotional support via a dedicated helpline number.
Asked by: Rupa Huq (Labour - Ealing Central and Acton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential merits of a reduction of VAT on all sales of alcohol and food to protect pubs during the cost of living crisis.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The VAT reduced rate for the hospitality sector was a temporary measure designed to support the cash flow and viability of sectors that have been severely affected by COVID-19. It was appropriate that as restrictions were lifted and demand for goods and services in these sectors increased, the temporary tax reliefs were first reduced and then removed.
There are no current plans to reduce the rate of VAT on food or alcohol. VAT is the UK’s third largest tax, and is forecast to raise £154 billion in 2022/23, helping to fund key spending priorities. In addition, this request should be viewed in the context of over £50 billion of requests for relief from VAT received since the EU referendum. Nevertheless, the Government keeps all taxes under review.
The Government understands that many businesses, including pubs, are suffering as a result of the energy crisis. Through the Energy Bill Relief Scheme, the Government will provide a discount on wholesale gas and electricity prices for all non-domestic consumers until 31 March 2023. The Government intends to provide targeted support to the most vulnerable businesses after this winter.
The Government has also introduced a new draught relief from 1 August 2022 as part of its reform of alcohol duties. This provides a lower duty rate for alcohol that is sold in pubs, provided it fulfils the eligibility criteria of being below 8.5% ABV and sold in containers of 20 litres or more. It will mean, for example, that the duty rate for eligible beer and cider will be approximately 5% lower than the standard rate and will therefore provide long-term support for pubs.
Asked by: Rupa Huq (Labour - Ealing Central and Acton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential merits of a complete temporary suspension of business rates in order to protect small businesses during the cost of living crisis.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The Final Report of the Business Rates Review was published at Autumn Budget 2021. The report reaffirmed the importance of business rates for raising revenue for essential local services, and announced a package of changes worth almost £7 billion over the next 5 years, including:
Announcements on Business Rates for the upcoming financial year will be made in due course.
Asked by: Rupa Huq (Labour - Ealing Central and Acton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what targeted support his Department is providing to (a) partially sighted and (b) blind people struggling with living costs.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
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 blind or partially sighted people. That is why the Government is taking decisive action to get households through this winter, while ensuring we act in a fiscally responsible way.
People who are blind or partially sighted and 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 rising cost of living. The DWP has already processed around 6 million such payments. This payment can be received in addition to the other £650 Cost of Living Payment for households on means-tested benefits that was announced as part of the same package. Individuals who have limited or no ability to work because of their disability or 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.
People who are blind or partially sighted 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 this winter 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. 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 until the end of March 2023, via the Household Support Fund.
This cost of living support is in addition to the existing specific financial support to help blind or partially sighted people. The Government provides the Blind Person's Allowance (BPA), an extra amount of tax-free allowance that can be added to an individual’s Personal Allowance, to those who are blind or severely sight impaired. In 2022-23, the allowance is £2,600 and therefore worth £520 given the basic rate of 20%. If the recipient does not pay tax or earn enough to use their full BPA, the remainder of the allowance can be transferred to a spouse or civil partner.
We are continuing to keep the situation under review and are focusing support on the most vulnerable whilst ensuring we act in a fiscally responsible way.