Asked by: David Linden (Scottish National Party - Glasgow East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 7 February 2022 to Question 119778 on the Energy Bill Discount Scheme, for what reason that Answer did not provide a definition of the word discount.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The Government is providing a £200 reduction on bills from October for all households in Great Britain with a domestic electricity meter, to reduce pressure on energy bills this year when global gas prices are high. This will help households manage the increase in energy bills by spreading the increased costs over a few years.
The energy bill reduction will give households time for their finances to adjust rather than having to deal with the price increase up front and will provide relief to millions of households.
The £200 is a reduction on bills to be automatically recouped from people’s bills interest-free over the next five years. The aim of the policy is to effectively spread the worst of the extra costs of this year’s energy price shock over time.
The energy bill reduction will be delivered by energy suppliers and the government will consult on the details of the scheme.
Asked by: David Linden (Scottish National Party - Glasgow East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what his definition is of the word discount in the context of his announcement on 4 February 2022 of a £200 repayable sum to be deducted from domestic energy bills.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
This year, all domestic electricity customers will receive a discount on their bills worth £200. This is a reduction on the higher costs that many energy customers would otherwise face this year, with an unprecedented spike in international gas wholesale prices forcing an increase in the April 2022 price cap. This reduction will mean the effective average annual energy bill households face will fall from £1,971 to £1,771.
The aim of the policy is to effectively spread the worst of the extra costs of this year’s energy price shock over time. Therefore, the cost of the discount will be automatically recouped from people’s bills interest-free over the next five years, to minimise the financial pressure on consumers.
This reduction is also only one part of a wider package of measures to support households in 2022/23 – including the £150 non-repayable reduction in Council Tax bills for (English) households in Bands A-D, which will apply from April.
Asked by: David Linden (Scottish National Party - Glasgow East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment HMRC has made of the potential merits of introducing arrivals duty free shops in airports, international rail and ferry terminals in Great Britain.
Answered by Kemi Badenoch - President of the Board of Trade
Following a consultation, the Government announced on 11 September 2020 that duty-free sales would be extended to EU-bound passengers for the first time in over 20 years from 1 January 2021.
This is a significant boost to all airports and international rail terminals in England, Scotland and Wales, including Manchester, and smaller regional airports and rail hubs, which have not been able to offer duty-free to the EU before.
Duty-free on arrival did not form part of the Government's consultation on the potential approach to duty- and tax-free goods arising from the UK’s new relationship with the EU, which took place in the Spring of 2020. The Government nonetheless acknowledged in the summary of responses to the consultation that some stakeholders had requested the introduction of duty-free on arrival. This also set out that duty-free on arrival was not a scheme that the Government previously offered and was therefore not considering implementing the scheme at that time.
Duty-free on arrival could undermine the UK high street and run counter to public health objectives. The Government would also need to consider the cost and any revenue and legal risks of introducing such a scheme. Any new tax relief will impose additional pressure on the public finances, to which excise duty makes a significant contribution. Duty on alcohol and tobacco raises over £22 billion and plays a key role in funding vital public services like the NHS and addressing harms caused by these products. Any loss in tax revenue would have to be balanced by a reduction in public spending, increased borrowing or increased taxation elsewhere.
Asked by: David Linden (Scottish National Party - Glasgow East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential merits of providing similar provision to NHS workers to that offered to the judiciary to mitigate against the effect of the pension lifetime allowance freeze on NHS workers.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The NHS remains the Government’s key spending priority. This is why the Government is increasing the NHS budget in England from £114.6 billion in 2018-19 to £148.5 billion in 2023-24.
The Government has also provided unprecedented support during the Covid-19 pandemic. As of 3 March 2021, taking into account the significant funding announced at Spending Review 2020 and Budget 2021, total support provided for the economy is £352bn across 2020-21 and 2021-22, or around 17 per cent of 2020 GDP. The Government must make responsible decisions to ensure the process of returning the public finances to a sustainable path is not harder than it needs to be.
Pensions tax relief is one of the most expensive reliefs in the personal tax system. In 2017-18 income tax and employer National Insurance Contributions reliefs cost £54 billion, with around 60 per cent going to higher and additional rate taxpayers. 92% of individuals approaching retirement over the next 5 years will have a pension below the lifetime allowance and so will not be affected by this change.
The unique circumstances of judiciary appointments mean that it is necessary to reform their pension arrangements. Judges are not able to work in private practice after taking up office, and many judges take a significant pay cut to join the judiciary. The combination of these factors is why the Government is committed to introduce a reformed judicial pension scheme. Such a scheme would not benefit the vast majority of NHS staff, as members would receive no tax relief on their contributions.
Asked by: David Linden (Scottish National Party - Glasgow East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the effect of the pension lifetime allowance freeze on staffing levels in the NHS.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The NHS remains the Government’s key spending priority. This is why the Government is increasing the NHS budget in England from £114.6 billion in 2018-19 to £148.5 billion in 2023-24.
The Government has also provided unprecedented support during the Covid-19 pandemic. As of 3 March 2021, taking into account the significant funding announced at Spending Review 2020 and Budget 2021, total support provided for the economy is £352bn across 2020-21 and 2021-22, or around 17 per cent of 2020 GDP. The Government must make responsible decisions to ensure the process of returning the public finances to a sustainable path is not harder than it needs to be.
Pensions tax relief is one of the most expensive reliefs in the personal tax system. In 2017-18 income tax and employer National Insurance Contributions reliefs cost £54 billion, with around 60 per cent going to higher and additional rate taxpayers. 92% of individuals approaching retirement over the next 5 years will have a pension below the lifetime allowance and so will not be affected by this change.
The unique circumstances of judiciary appointments mean that it is necessary to reform their pension arrangements. Judges are not able to work in private practice after taking up office, and many judges take a significant pay cut to join the judiciary. The combination of these factors is why the Government is committed to introduce a reformed judicial pension scheme. Such a scheme would not benefit the vast majority of NHS staff, as members would receive no tax relief on their contributions.
Asked by: David Linden (Scottish National Party - Glasgow East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to ensure that the proposed freeze to the lifetime allowance does not encourage senior healthcare workers to retire earlier than planned.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The NHS remains the Government’s key spending priority. This is why the Government is increasing the NHS budget in England from £114.6 billion in 2018-19 to £148.5 billion in 2023-24.
The Government has also provided unprecedented support during the Covid-19 pandemic. As of 3 March 2021, taking into account the significant funding announced at Spending Review 2020 and Budget 2021, total support provided for the economy is £352bn across 2020-21 and 2021-22, or around 17 per cent of 2020 GDP. The Government must make responsible decisions to ensure the process of returning the public finances to a sustainable path is not harder than it needs to be.
Pensions tax relief is one of the most expensive reliefs in the personal tax system. In 2017-18 income tax and employer National Insurance Contributions reliefs cost £54 billion, with around 60 per cent going to higher and additional rate taxpayers. 92% of individuals approaching retirement over the next 5 years will have a pension below the lifetime allowance and so will not be affected by this change.
The unique circumstances of judiciary appointments mean that it is necessary to reform their pension arrangements. Judges are not able to work in private practice after taking up office, and many judges take a significant pay cut to join the judiciary. The combination of these factors is why the Government is committed to introduce a reformed judicial pension scheme. Such a scheme would not benefit the vast majority of NHS staff, as members would receive no tax relief on their contributions.
Asked by: David Linden (Scottish National Party - Glasgow East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the potential merits of amending the Coronavirus Job Retention Scheme so that disabled workers who are concerned about returning to work due to their impairment have the right to be put on furlough if they cannot work from home.
Answered by Jesse Norman
The Coronavirus Job Retention Scheme (CJRS) has been available since the start of the pandemic. Shielding guidance is no longer in place, but Clinically Extremely Vulnerable (CEV) individuals can continue to be claimed for like everyone else, subject to the CJRS eligibility criteria.
It is not for the Government to decide whether an individual firm should put its staff on furlough; that is a decision for the employer, in consultation with the employee. CEV individuals and those who are disabled should talk to their employer to discuss and agree options in relation to work, such as working from home, or returning to the workplace in a different role if their previous position cannot be fulfilled in a COVID-secure manner.
Asked by: David Linden (Scottish National Party - Glasgow East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what equalities impact assessment he has made of Budget 2021 to fulfil the requirements of the Public Sector Equality Duty; and if he will publish that assessment.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The measures at Budget 2021, such as the continuation of the measures to respond to the impact of COVID-19, will support many people across society and promote this government’s belief in fairness. The Treasury carefully considers the impact of its decisions on those sharing protected characteristics, including at Budgets and other fiscal events, in line with both its legal obligations and with its strong commitment to promoting fairness. At Budget 2021, Ministers have paid such due regard to the equalities implications of their decisions and these decisions have been announced to Parliament. In interests of transparency we publish impacts in summary form for tax measures in tax information and impact notes (TIINs) alongside Finance Acts.
Asked by: David Linden (Scottish National Party - Glasgow East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking in addition to putting new guidance on gov.uk to raise awareness for the tax rebate for home-working.
Answered by Jesse Norman
HM Revenue and Customs (HMRC) continue to engage with stakeholder groups, including employers, to raise awareness of the tax relief available to those working from home.
Asked by: David Linden (Scottish National Party - Glasgow East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will take steps to ensure that people working from home are aware of a tax rebate they can access from HMRC for (a) wifi, (b) computers and (c) other work related expenses such as WIFI and computers.
Answered by Jesse Norman
The Government published a Written Ministerial Statement on 13 May 2020. This announced a new tax exemption for employees who are working from home as a result of the coronavirus outbreak, and need to purchase home office equipment and are reimbursed by the employer.
HMRC published new guidance on GOV.UK to raise awareness of the tax relief available to people working from home for home office equipment and other work-related expenses. HMRC have also included information in their publications such as the Employer Bulletin and guidance manuals, and are working directly with stakeholder groups and media outlets to help raise further awareness.