Asked by: Imran Hussain (Labour - Bradford East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when the Government plans to bring forward legislation setting geographic requirements to ensure the provision of withdrawal and deposit facilities to meet cash needs.
Answered by Andrew Griffith - Shadow Secretary of State for Business and Trade
The Government has introduced legislation to protect access to cash through Clause 47 and Schedule 8 of the Financial Services and Markets Bill. The Bill intends to establish the Financial Conduct Authority as the lead regulator for cash access and provide it with appropriate powers to seek to ensure reasonable provision of withdrawal and deposit facilities.
The Bill enables HM Treasury to set out the Government’s policy on cash access in respect of cash withdrawal and deposit services, and for urban and rural areas. The FCA will be required to have regard to this in carrying out its responsibilities under the legislation. The Government will set out further details in due course.
Further details about the Financial Services and Markets Bill can be found on the Parliament website: https://bills.parliament.uk/bills/3326
Asked by: Imran Hussain (Labour - Bradford East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the marginal rate of tax, taking student loan repayments into consideration, will be for a graduate earning over £50,270 after the Government's National Insurance rise and changes to the student loan system are implemented.
Answered by Lucy Frazer
The Health and Social Care Levy introduces a new 1.25 per cent tax. In the 2022-23 tax year this will be collected via a temporary increase to National Insurance contributions (NICs). Revenue raised will be ringfenced to support UK health and social care bodies.
The rate of repayment for student loans remains at 9 per cent on all income above the relevant threshold for Plan 1, Plan 2, and Plan 4 loans. For Post Graduate Loans (PGL) the repayment rate is 6 per cent.
In 2022-23, a graduate employee with earnings of £27,295, excluding a PGL loan, will have a marginal deduction rate of 42.25 per cent. This is made up of Income Tax (20 per cent), NICs (13.25 per cent), and Student Loan deduction (9 per cent).
In contrast, a graduate employee with earnings of £50,270 would have a marginal deduction rate of 52.25 per cent. This is made up of Income Tax (40 per cent), NICs (3.25 per cent), and Student Loan deduction (9 per cent).
Other factors including any reliefs, pension contributions, or receipt of certain means-tested welfare benefits could adjust these marginal deduction rates.
Asked by: Imran Hussain (Labour - Bradford East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the marginal rate of tax, taking student loan repayments into consideration, will be for a graduate earning over £27,295 after the Government's National Insurance rise and changes to the student loan system are implemented.
Answered by Lucy Frazer
The Health and Social Care Levy introduces a new 1.25 per cent tax. In the 2022-23 tax year this will be collected via a temporary increase to National Insurance contributions (NICs). Revenue raised will be ringfenced to support UK health and social care bodies.
The rate of repayment for student loans remains at 9 per cent on all income above the relevant threshold for Plan 1, Plan 2, and Plan 4 loans. For Post Graduate Loans (PGL) the repayment rate is 6 per cent.
In 2022-23, a graduate employee with earnings of £27,295, excluding a PGL loan, will have a marginal deduction rate of 42.25 per cent. This is made up of Income Tax (20 per cent), NICs (13.25 per cent), and Student Loan deduction (9 per cent).
In contrast, a graduate employee with earnings of £50,270 would have a marginal deduction rate of 52.25 per cent. This is made up of Income Tax (40 per cent), NICs (3.25 per cent), and Student Loan deduction (9 per cent).
Other factors including any reliefs, pension contributions, or receipt of certain means-tested welfare benefits could adjust these marginal deduction rates.
Asked by: Imran Hussain (Labour - Bradford East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what proportion of the population will pay more as a result of the National Insurance Contribution rise in April 2022 than they will receive through the Council Tax Rebate.
Answered by Simon Clarke
The Treasury publishes analysis alongside fiscal events setting out the combined impact on households of government tax and spend decisions in the round. Analysis published at Autumn Budget 21 showed that tax and spend changes announced by this government are progressive overall, with low-income households on average contributing the least in tax and receiving most benefit from spending.
Individually, these measures are progressive. The highest earning 15 per cent pay around half of the revenues for the Health and Social Care Levy. Around 80% of households in England are in Council Tax Bands A-D, and so will benefit from this rebate.