Asked by: Paul Howell (Conservative - Sedgefield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the (a) number of people who will financially benefit from the National Insurance reduction announced in the Spring Budget 2024 and (b) average (i) financial gain from that reduction and (ii) cumulative financial gain from reductions to National Insurance announced in the Autumn Statement 2023 and Spring Budget 2024, by region.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
The estimated number of people who financially benefited from the National insurance reduction in the Autumn Statement and Spring Budget and the associated financial gain for an average employee on £35,404 can be seen in Table 1 below:
Table 1: gain for an average employee on £35,404 from reductions to National Insurance announced in the Autumn Statement 2023 and Spring Budget 2024
2024 to 2025 tax year impacts | Autumn Statement only | Spring Budget only | Cumulative Spring Budget and Autumn Statement |
Number of people who financially benefitted from the NICs reduction, 1000s | 29,300 | 29,500 | 29,500 |
Gain for average employee with mean employee salary of £35,404 | £457 | £457 | £913 |
The estimated average financial gain among those benefitting from both the Autumn Statement 2023 and Spring Budget 2024 National insurance reduction, by region, can be seen in the Table 2 below:
Table 2: average financial gain and cumulative gain from reductions to National Insurance announced in the Autumn Statement 2023 and Spring Budget 2024, by region
2024 to 2025 tax year impacts by region | Number of gainers, 1000s | Average gain, Spring Budget only | Average cumulative gain, Autumn Statement and Spring Budget |
North East | 1,060 | £316 | £632 |
North West and Merseyside | 3,140 | £321 | £644 |
Yorkshire and the Humber | 2,330 | £313 | £628 |
East Midlands | 2,110 | £322 | £645 |
West Midlands | 2,500 | £322 | £645 |
East of England | 2,830 | £360 | £720 |
London | 4,350 | £381 | £763 |
South East | 4,120 | £369 | £738 |
South West | 2,420 | £327 | £655 |
Northern Ireland | 807 | £308 | £618 |
Scotland | 2,430 | £338 | £677 |
Wales | 1,240 | £320 | £642 |
Total | 29,500 | £341 | £683 |
These are the modelled average impacts rather than the impacts for an average full time employee (on a given salary), for example the £900 gain previously published for the cumulative impacts.
The Autumn Statement 2023 National insurance reduction estimates are based upon the 2019 to 2020 Survey of Personal Incomes, projected in line with economic assumptions consistent with the Office for Budget Responsibilities November 2023 Economic and Fiscal Outlook.
The Spring Budget 2024 National insurance reduction estimates and cumulative estimates of both policies are based upon the 2019 to 2020 Survey of Personal Incomes, projected in line with economic assumptions consistent with the Office for Budget Responsibilities March 2024 Economic and Fiscal Outlook.
Asked by: Paul Howell (Conservative - Sedgefield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the (a) number of people who financially benefited from the National Insurance reduction announced in the Autumn Statement 2023 and (b) average financial gain from that reduction.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
The estimated number of people who financially benefited from the National insurance reduction in the Autumn Statement and Spring Budget and the associated financial gain for an average employee on £35,404 can be seen in Table 1 below:
Table 1: gain for an average employee on £35,404 from reductions to National Insurance announced in the Autumn Statement 2023 and Spring Budget 2024
2024 to 2025 tax year impacts | Autumn Statement only | Spring Budget only | Cumulative Spring Budget and Autumn Statement |
Number of people who financially benefitted from the NICs reduction, 1000s | 29,300 | 29,500 | 29,500 |
Gain for average employee with mean employee salary of £35,404 | £457 | £457 | £913 |
The estimated average financial gain among those benefitting from both the Autumn Statement 2023 and Spring Budget 2024 National insurance reduction, by region, can be seen in the Table 2 below:
Table 2: average financial gain and cumulative gain from reductions to National Insurance announced in the Autumn Statement 2023 and Spring Budget 2024, by region
2024 to 2025 tax year impacts by region | Number of gainers, 1000s | Average gain, Spring Budget only | Average cumulative gain, Autumn Statement and Spring Budget |
North East | 1,060 | £316 | £632 |
North West and Merseyside | 3,140 | £321 | £644 |
Yorkshire and the Humber | 2,330 | £313 | £628 |
East Midlands | 2,110 | £322 | £645 |
West Midlands | 2,500 | £322 | £645 |
East of England | 2,830 | £360 | £720 |
London | 4,350 | £381 | £763 |
South East | 4,120 | £369 | £738 |
South West | 2,420 | £327 | £655 |
Northern Ireland | 807 | £308 | £618 |
Scotland | 2,430 | £338 | £677 |
Wales | 1,240 | £320 | £642 |
Total | 29,500 | £341 | £683 |
These are the modelled average impacts rather than the impacts for an average full time employee (on a given salary), for example the £900 gain previously published for the cumulative impacts.
The Autumn Statement 2023 National insurance reduction estimates are based upon the 2019 to 2020 Survey of Personal Incomes, projected in line with economic assumptions consistent with the Office for Budget Responsibilities November 2023 Economic and Fiscal Outlook.
The Spring Budget 2024 National insurance reduction estimates and cumulative estimates of both policies are based upon the 2019 to 2020 Survey of Personal Incomes, projected in line with economic assumptions consistent with the Office for Budget Responsibilities March 2024 Economic and Fiscal Outlook.
Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he plans to take to support small businesses with cash banking, in the context of closures of physical banks.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
In recognition that cash continues to be used by millions of people across the UK, including those in vulnerable circumstances, the government legislated through the Financial Services and Markets Act 2023 to establish a new legislative framework to protect access to cash. This establishes the Financial Conduct Authority (FCA) as the lead regulator for access to cash and provides it with responsibility and powers to seek to ensure reasonable provision of cash withdrawal and deposit facilities.
Following this legislation, the government published a Cash Access Policy Statement. This set out that the vast majority of people should be no further than 1 mile from access to cash deposit and withdrawal services in predominately urban areas, and no further than 3 miles in predominately rural areas. The FCA is required to have regard to this statement when exercising its access to cash powers.
The government considers that this legislation will support businesses to continue accepting cash by ensuring they have reasonable access to deposit facilities.
The FCA recently held a consultation on its proposed regulatory approach: FCA Access to Cash Consultation. The FCA is currently considering feedback and expects to publish its final rules in the third quarter of this year.
Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department has taken to promote the workplace nursery scheme; and how much has been spent promoting that scheme in each financial year since it was introduced.
Answered by Laura Trott - Chief Secretary to the Treasury
Workplace Nurseries formed part of Employer Supported Childcare (ESC), which closed for new applicants from 4 October 2018.
Employees already registered before 4th October 2018 are able to continue using the scheme for as long as the employer offers it, or as long as they stay with the employer.
ESC was replaced by Tax-Free Childcare in October 2018.
The Government continues to support parents with childcare, including through Tax-Free Childcare, the free hours childcare offer, and Universal Credit Childcare.
Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the level of usage of the workplace nursery scheme since it was introduced.
Answered by Laura Trott - Chief Secretary to the Treasury
Workplace Nurseries formed part of Employer Supported Childcare (ESC), which closed for new applicants from 4 October 2018.
Employees already registered before 4th October 2018 are able to continue using the scheme for as long as the employer offers it, or as long as they stay with the employer.
ESC was replaced by Tax-Free Childcare in October 2018.
The Government continues to support parents with childcare, including through Tax-Free Childcare, the free hours childcare offer, and Universal Credit Childcare.
Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to take legislative steps to help ensure public access to cash.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
In recognition that cash continues to be used by millions of people across the UK, including those in vulnerable circumstances, the government legislated through the Financial Services and Markets Act 2023 to establish a new legislative framework to protect access to cash. This establishes the Financial Conduct Authority (FCA) as the lead regulator for access to cash and provides it with responsibility and powers to seek to ensure reasonable provision of cash withdrawal and deposit facilities.
Following this legislation, the government published a Cash Access Policy Statement. This set out that the vast majority of people should be no further than 1 mile from access to cash deposit and withdrawal services in predominately urban areas, and no further than 3 miles in predominately rural areas. The FCA is required to have regard to this statement when exercising its access to cash powers.
The government considers that this legislation will support businesses to continue accepting cash by ensuring they have reasonable access to deposit facilities.
The FCA recently held a consultation on its proposed regulatory approach: FCA Access to Cash Consultation. The FCA is currently considering feedback and expects to publish its final rules in the third quarter of this year.
Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to bring forward legislative proposals to reinforce the status of cash as legal tender.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
The forms of payment that are accepted should remain the choice of individual businesses , based on their consideration of factors such as customer preference and cost.
Nevertheless, the Government recognises that cash continues to be used by millions of people across the UK. The Financial Services and Markets Act 2023 established a new legislative framework to protect access to cash for consumers and businesses.
Asked by: James Wild (Conservative - North West Norfolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 8 May 2024 to Question 24152 on Natwest: Shares, if he will list each adviser by (a) the purpose for which they were appointed and (b) the value of the contract awarded.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
The government has not published a comprehensive list of all advisers at this time, however, the publicly available list of relevant procurement contracts can be found at the government’s Contract Finder website.
Asked by: Michael Shanks (Labour - Rutherglen and Hamilton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to ensure the adequacy of response times for ministerial correspondence.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
The Government attaches great importance to the effective and timely handling of correspondence. Ministers and officials are committed to providing the highest level of service. The Cabinet Office publishes correspondence performance data on GOV.UK on a regular basis, detailing departmental performance in handling correspondence.
Asked by: Emily Thornberry (Labour - Islington South and Finsbury)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the average waiting time was for individuals submitting an IHT400 form to HMRC between 1 January to 30 April 2024 to receive a unique code to enable them to apply for probate; and how many individuals have waited for (a) one to two, (b) two to three, (c) three to four, (d) four to five, (e) five to six and (e) more than six months since submitting their IHT400 form to receive the unique code from HMRC as of 8 May 2024.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
HMRC prioritises requests for IHT reference numbers and the follow up IHT400 forms submitted to set up an IHT account. Between 1 January and 30 April 2024 HMRC have exceeded its service standard for issuing unique codes for Probate cases where the correct tax amount has been accounted for. The service standard is to process 80% of these requests within 15 working days.