Asked by: Drew Hendry (Scottish National Party - Inverness, Nairn, Badenoch and Strathspey)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 29 February 2024 to Question 15683 on National Insurance: Foster Care, whether she has made an assessment of the potential merits of topping-up the National Insurance contributions of foster carers who were unable to work due to the rules that were in place before 2003.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
Between 2003 and 2010, foster carers could claim Home Responsibilities Protection (HRP) to protect their National Insurance record. Foster carers who did not claim HRP at the time can make a retrospective claim now – guidance is available at: https://www.gov.uk/home-responsibilities-protection-hrp
There are no plans to extend this period to allow foster carers to claim HRP before 6 April 2003.
For periods prior to 2003, foster carers could have paid voluntary NICs to protect their National Insurance (NI) record subject to the normal time limits. Time limits for voluntary NICs are an important feature of the NI system, which operates on a pay as you go basis; the National Insurance contributions (NICs) paid now are used to fund today’s contributory benefits.
There are no plans to allow foster carers to pay voluntary NICs for periods before 2003 to top up their NI records, outside of the existing rules for voluntary NICs. This maintains fairness for other individuals who have paid voluntary NICs within the required time limits.
At Spring Budget 2023, the government increased the amount of income tax relief available to foster carers and shared lives carers. The threshold of income at which qualifying carers begin paying tax on care income was increased to £18,140 per year plus £375 to £450 per person cared for per week for 2023-24 (the weekly amount range is based on age of the child or adult under care). Both the threshold and weekly amounts will then be index-linked from 2024-25 onwards, representing a tax cut worth approximately £450 per year on average
Asked by: Wendy Chamberlain (Liberal Democrat - North East Fife)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, if he will make it his policy to (a) collect and (b) publish management information on the number of people who have (i) had changes to their National Insurance record and (ii) are waiting to have their state pension calculation updated.
Answered by Paul Maynard - Parliamentary Under-Secretary (Department for Work and Pensions)
DWP does not publish this information as changes to a citizen’s National Insurance Record forms part of HM Revenue & Customs (HMRC) function. When DWP receives notification from HMRC of a change in a citizen’s National Insurance record, DWP reviews the State Pension claim accordingly.
The vast majority of changes to a citizen’s National Insurance Record are processed by DWP within days. However, more complex cases requiring specialist caseworkers can take longer to resolve.
Asked by: Navendu Mishra (Labour - Stockport)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, whether he has made an assessment of the potential merits of adjusting the National Insurance (NI)/State Pension scheme rules so that any NI payments made before State Pension age are taken into account so that they can contribute to gaining a Full NI Qualifying Year.
Answered by Paul Maynard - Parliamentary Under-Secretary (Department for Work and Pensions)
No such assessment has been made.
A person's working life is the period from the beginning of the tax year (6 April) in which they are aged 16, to the end of the tax year (5 April) before the one in which they reach State Pension age (known as the Final Relevant Year).
National Insurance contributions made during an individual’s Final Relevant Year count towards their National Insurance record however, contributions made in the tax year someone reaches State Pension age do not. This is because the administration of National Insurance records is carried out in line with tax years – from 6 April one year to 5 April the next year.
Over a working life, most people will build enough Qualifying Years to maximise their state pension.
Asked by: Drew Hendry (Scottish National Party - Inverness, Nairn, Badenoch and Strathspey)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to top up national insurance contributions for individuals who received foster care allowances but were not allowed to work while fostering.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
Foster carers can claim National Insurance (NI) credits known as ‘Credits for Parents and Carers’ (CPC) which count towards their State Pension. If a foster carer is unable to work due to their caring responsibilities, claiming CPC will prevent any gaps in their NI record as a result for State Pension purposes.
CPC can be claimed for periods from 6 April 2010 onwards and replaced Home Responsibilities Protection (HRP) which foster carers can claim for periods between 2003 – 2010.
Asked by: Gregory Campbell (Democratic Unionist Party - East Londonderry)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, pursuant to the Answer of 27 November 2023 to Question 2787 on Universal Credit: National Insurance Contributions, whether he expects that all National Insurance records will be fully updated by HMRC by April 2024.
Answered by Jo Churchill - Minister of State (Department for Work and Pensions)
DWP completed the work to send 22 million records of Universal Credit customers to HMRC in order for them to update their National Insurance records in 2023. There remain a small subset of cases that need to be worked through manually. This work is in progress and will be completed by summer 2024. Records of customers who are over, or close to state pension age that need manual work are being prioritised.
Asked by: Drew Hendry (Scottish National Party - Inverness, Nairn, Badenoch and Strathspey)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the compatibility of the issuing of section 684 notices by HMRC with the recommendations of the independent loan charge review led by Sir Amyas Morse.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
The Loan Charge is targeted at contrived tax avoidance schemes that sought to avoid Income Tax and National Insurance contributions by paying users their income in the form of loans.
In his independent review, Lord Morse recommended that the Loan Charge no longer apply to loans made before 9 December 2010. However, Lord Morse said “HMRC should continue being able to settle and investigate cases prior to this point under their normal powers where they have appropriate grounds, and a legal basis, to do so”. The government accepted this recommendation. In line with this recommendation, HMRC is still seeking to recover the tax due where it had taken the necessary steps in the past to give it the legal basis to do so.
In May 2022, the Court of Appeal said that HMRC could consider using certain provisions in the PAYE system (referred to as ‘section 684(7A)(b)’) to collect tax directly from the individual who received income through a DR scheme. HMRC using these provisions where appropriate is in line with Lord Morse’s recommendation.
Asked by: Daniel Zeichner (Labour - Cambridge)
Question to the Department for Education:
To ask the Secretary of State for Education, whether she has had discussions with the Secretary of State for Science, Innovation and Technology on the potential merits of extending childcare grants to postgraduate research students.
Answered by David Johnston - Parliamentary Under-Secretary (Department for Education)
Through the student loans company, the department offers a specific Childcare Grant (CCG) to support students with the costs of childcare whilst they are in study, which totals around £202 million per year.
The CCG offers parents support of up to 85% of their childcare costs up to a maximum of £183.75 a week for one child and £315.03 for two children.
CCG support is provided to individuals where both parents are students, the student is a lone parent, or the student parent’s partner is on a low income.
The government has no plans to extend CCG to postgraduate research students.
The government introduced new support packages for students starting postgraduate master’s degree courses from the 2016/17 academic year onwards and postgraduate doctoral degree courses from 2018/19 onwards.
These loans are not based on income and are intended as a contribution to the cost of study. They can be used by students according to their personal circumstances to cover the costs of fees and living costs including childcare. The new support packages have provided a significant uplift in support for postgraduate students while ensuring the student support system remains financially sustainable.
Students studying on postgraduate courses can apply for loans towards their course fees and living costs of up to £12,167 in 2023/24 for new students undertaking postgraduate master’s degree courses, and up to £28,673 in 2023/24 for new students undertaking postgraduate doctoral degree courses.
As postgraduate stipends are not classified as income for tax purposes by HMRC, meaning that neither PhD students nor their university pay Income Tax or National Insurance Contributions on their stipend, stipends are therefore not counted as income from work. However, it remains the case that students are eligible for universal 15 hours childcare, which is available to all 3 and 4 yearolds, regardless of family circumstances and/or income.
Asked by: Daniel Zeichner (Labour - Cambridge)
Question to the Department for Education:
To ask the Secretary of State for Education, what recent assessment she has made of the adequacy of support available to postgraduate research students with the cost of childcare.
Answered by David Johnston - Parliamentary Under-Secretary (Department for Education)
Through the student loans company, the department offers a specific Childcare Grant (CCG) to support students with the costs of childcare whilst they are in study, which totals around £202 million per year.
The CCG offers parents support of up to 85% of their childcare costs up to a maximum of £183.75 a week for one child and £315.03 for two children.
CCG support is provided to individuals where both parents are students, the student is a lone parent, or the student parent’s partner is on a low income.
The government has no plans to extend CCG to postgraduate research students.
The government introduced new support packages for students starting postgraduate master’s degree courses from the 2016/17 academic year onwards and postgraduate doctoral degree courses from 2018/19 onwards.
These loans are not based on income and are intended as a contribution to the cost of study. They can be used by students according to their personal circumstances to cover the costs of fees and living costs including childcare. The new support packages have provided a significant uplift in support for postgraduate students while ensuring the student support system remains financially sustainable.
Students studying on postgraduate courses can apply for loans towards their course fees and living costs of up to £12,167 in 2023/24 for new students undertaking postgraduate master’s degree courses, and up to £28,673 in 2023/24 for new students undertaking postgraduate doctoral degree courses.
As postgraduate stipends are not classified as income for tax purposes by HMRC, meaning that neither PhD students nor their university pay Income Tax or National Insurance Contributions on their stipend, stipends are therefore not counted as income from work. However, it remains the case that students are eligible for universal 15 hours childcare, which is available to all 3 and 4 yearolds, regardless of family circumstances and/or income.
Asked by: Daniel Zeichner (Labour - Cambridge)
Question to the Department for Education:
To ask the Secretary of State for Education, whether she plans to extend childcare grants to postgraduate research students.
Answered by David Johnston - Parliamentary Under-Secretary (Department for Education)
Through the student loans company, the department offers a specific Childcare Grant (CCG) to support students with the costs of childcare whilst they are in study, which totals around £202 million per year.
The CCG offers parents support of up to 85% of their childcare costs up to a maximum of £183.75 a week for one child and £315.03 for two children.
CCG support is provided to individuals where both parents are students, the student is a lone parent, or the student parent’s partner is on a low income.
The government has no plans to extend CCG to postgraduate research students.
The government introduced new support packages for students starting postgraduate master’s degree courses from the 2016/17 academic year onwards and postgraduate doctoral degree courses from 2018/19 onwards.
These loans are not based on income and are intended as a contribution to the cost of study. They can be used by students according to their personal circumstances to cover the costs of fees and living costs including childcare. The new support packages have provided a significant uplift in support for postgraduate students while ensuring the student support system remains financially sustainable.
Students studying on postgraduate courses can apply for loans towards their course fees and living costs of up to £12,167 in 2023/24 for new students undertaking postgraduate master’s degree courses, and up to £28,673 in 2023/24 for new students undertaking postgraduate doctoral degree courses.
As postgraduate stipends are not classified as income for tax purposes by HMRC, meaning that neither PhD students nor their university pay Income Tax or National Insurance Contributions on their stipend, stipends are therefore not counted as income from work. However, it remains the case that students are eligible for universal 15 hours childcare, which is available to all 3 and 4 yearolds, regardless of family circumstances and/or income.
Asked by: Sarah Owen (Labour - Luton North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he will alter the existing categories for voluntary National Insurance contributions up to 15 years to include British National (Overseas) visa holders by (a) creating a new category of eligibility for Class 2 and 3 voluntary contributions and (b) carving out an exception for BNO visa holders in the existing requirements for people who have previously worked overseas.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
British National Overseas individuals who live or work abroad (or have previously) are usually able to make backdated voluntary National Insurance contributions payments for the previous six tax years where they have either previously lived in the UK for three years in a row or paid at least three years of contributions.
For the tax years 2016 to 2017 and 2017 to 2018 the government has extended the deadline for paying voluntary contributions to 5 April 2025.
The deadline has also been extended to 5 April 2025 for eligible customers to pay voluntary contributions for the tax years 6 April 2006 to 5 April 2016. Further guidance on the eligibility and deadlines for making voluntary contributions, including for those living or working abroad is published online at: https://www.gov.uk/voluntary-national-insurance-contributions.
The Government keeps all taxes under review.