Asked by: Lord Tyler (Liberal Democrat - Life peer)
Question to the Department for Work and Pensions:
To ask Her Majesty’s Government what assessment they have made of the report by the Institute of Fiscal Studies <i>Living Standards, Poverty and Inequality in the UK: 2015;</i> and how they plan to respond to the findings that nearly 63 per cent of British children living in poverty are in working families.
Answered by Baroness Altmann
The recent IFS report is positive about the Government’s new approach to tackling the root causes of poverty: they said that “focusing on a broad range of inputs into life chances and causes of poverty is sensible.” They also add that “family worklessness certainly is a sensible thing to track if one wants to reduce the prevalence of low living standards.”
This Government knows that work remains the best route out of poverty. Research shows that around three-quarters of poor children in families that move into full employment exit poverty. We are committed to supporting parents to move into work, increase their earnings, and keep more of what they earn. Universal Credit, our investment in childcare and the introduction of the National Living Wage will all play an important part.
The Government also recognises that improving skills and progression is the key to making work pay. That is why under this Government we intend to create three million more apprenticeships over the next five years, and to help people move on to better jobs by improving qualifications and providing additional support through Jobcentre Plus.
Asked by: Lord Tyler (Liberal Democrat - Life peer)
Question to the Department for Work and Pensions:
To ask Her Majesty’s Government what assessment they have made of the revenues which would be realised by applying income tax to Winter Fuel Payments.
Answered by Lord Freud
Eligibility for Winter Fuel Payments is based on female State Pension age. The latest estimates we have show that there are currently around 600,000 higher and additional rate taxpayers in Great Britain in 2014/15 who are above the female State Pension age and therefore qualify for Winter Fuel Payments1.
We ask people who want to return their payment to do so by post so that it can be dealt with securely under existing Departmental financial processes and recorded against their Winter Fuel Payment account. We also ask for a covering letter indicating whether or not they wish us to continue to issue payments in future years.
Returned payments should be sent to the address on the issuing letter or to the office that pays the claimant’s benefit.
The latest estimates we have show that treating Winter Fuel Payments as taxable income would bring in around £250 million a year of additional revenue2.
Notes:
1. This estimate is based on the 2011/12 Survey of Personal Incomes using economic assumptions consistent with the OBR’s November 2014 economic and fiscal outlook.
The estimate uses ONS population projections at mid year 2012 adjusted for financial years.
The estimate is rounded to the nearest 100,000.
2. This estimate is based on DWP modelling using HMRC taxpayer data from November 2012 and Winter Fuel Payment caseload data from Winter 2013.
This takes into account revenue from Basic, Higher and Additional rate taxpayers.
Winter Fuel Payment rates are assumed to be £200 per year for recipients under 80 and £300 a year for recipients aged 80 and over.
Asked by: Lord Tyler (Liberal Democrat - Life peer)
Question to the Department for Work and Pensions:
To ask Her Majesty’s Government whether, and if so how, recipients of the Winter Fuel Payment may return their payment to the Treasury.
Answered by Lord Freud
Eligibility for Winter Fuel Payments is based on female State Pension age. The latest estimates we have show that there are currently around 600,000 higher and additional rate taxpayers in Great Britain in 2014/15 who are above the female State Pension age and therefore qualify for Winter Fuel Payments1.
We ask people who want to return their payment to do so by post so that it can be dealt with securely under existing Departmental financial processes and recorded against their Winter Fuel Payment account. We also ask for a covering letter indicating whether or not they wish us to continue to issue payments in future years.
Returned payments should be sent to the address on the issuing letter or to the office that pays the claimant’s benefit.
The latest estimates we have show that treating Winter Fuel Payments as taxable income would bring in around £250 million a year of additional revenue2.
Notes:
1. This estimate is based on the 2011/12 Survey of Personal Incomes using economic assumptions consistent with the OBR’s November 2014 economic and fiscal outlook.
The estimate uses ONS population projections at mid year 2012 adjusted for financial years.
The estimate is rounded to the nearest 100,000.
2. This estimate is based on DWP modelling using HMRC taxpayer data from November 2012 and Winter Fuel Payment caseload data from Winter 2013.
This takes into account revenue from Basic, Higher and Additional rate taxpayers.
Winter Fuel Payment rates are assumed to be £200 per year for recipients under 80 and £300 a year for recipients aged 80 and over.
Asked by: Lord Tyler (Liberal Democrat - Life peer)
Question to the Department for Work and Pensions:
To ask Her Majesty’s Government how many recipients of the Winter Fuel Payment are higher rate taxpayers.
Answered by Lord Freud
Eligibility for Winter Fuel Payments is based on female State Pension age. The latest estimates we have show that there are currently around 600,000 higher and additional rate taxpayers in Great Britain in 2014/15 who are above the female State Pension age and therefore qualify for Winter Fuel Payments1.
We ask people who want to return their payment to do so by post so that it can be dealt with securely under existing Departmental financial processes and recorded against their Winter Fuel Payment account. We also ask for a covering letter indicating whether or not they wish us to continue to issue payments in future years.
Returned payments should be sent to the address on the issuing letter or to the office that pays the claimant’s benefit.
The latest estimates we have show that treating Winter Fuel Payments as taxable income would bring in around £250 million a year of additional revenue2.
Notes:
1. This estimate is based on the 2011/12 Survey of Personal Incomes using economic assumptions consistent with the OBR’s November 2014 economic and fiscal outlook.
The estimate uses ONS population projections at mid year 2012 adjusted for financial years.
The estimate is rounded to the nearest 100,000.
2. This estimate is based on DWP modelling using HMRC taxpayer data from November 2012 and Winter Fuel Payment caseload data from Winter 2013.
This takes into account revenue from Basic, Higher and Additional rate taxpayers.
Winter Fuel Payment rates are assumed to be £200 per year for recipients under 80 and £300 a year for recipients aged 80 and over.