Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what estimate he has made of the effect on the household income of UK citizens of increasing insurance premium tax from 10 to 12 per cent.

Insurance Premium Tax is a tax on all general insurance. It is paid by insurers and it is up to insurers to decide whether to pass on any tax paid.

If insurers choose to pass on the full cost of the rate rise this would increase the average household’s spending on insurance by £18 per year. This is calculated using data from the Office for National Statistics. This takes into account the fact that only a third of households have two cars and only 11% of the population have medical insurance.