Asked by: James McMurdock (Independent - South Basildon and East Thurrock)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 12 January 2026 to Question 102102, when she plans to publish guidance on the treatment of allowable expenses for childminders.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Childminders play a vital role in childcare. The Government has eased rules on working from schools and community centres and increased early years funding rates above 2023 average fees. These increases reflect increased costs, and from April 2026, local authorities must pass at least 97 per cent of funding to providers.
At Budget 2025 the Government confirmed that the standard rules for calculating income tax would apply to childminders who are mandated into Making Tax Digital (MTD). HMRC engaged with stakeholders including Coram PACEY ahead of Budget 2025. We will phase in this change between 2026 and 2028, in line with the MTD income thresholds. The threshold from April 2026 is £50,000 of qualifying income, reducing to £30,000 from April 2027 and £20,000 from April 2028. Childminders not within MTD can continue to use existing arrangements if they wish.
Childminders within MTD can continue to claim tax relief for wear and tear by deducting the actual cost of buying, repairing or replacing items. They can also deduct the cost of business expenses such as utilities, cleaning and equipment. This ensures childminders receive tax relief for all of the costs that they incur in relation to their childminding business. Childminders may be better off deducting actual costs, if deductions under the existing arrangements are lower than their actual expenses.
HMRC will publish updated guidance for childminders in early 2026. Guidance on business expenses and on MTD for Income Tax is already available on GOV.UK. The Government will closely monitor the impacts of the policy over the course of the first year.
Asked by: James McMurdock (Independent - South Basildon and East Thurrock)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the adequacy of expense rules for childminders whose homes function as full-time workplaces.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Childminders play a vital role in childcare. The Government has eased rules on working from schools and community centres and increased early years funding rates above 2023 average fees. These increases reflect increased costs, and from April 2026, local authorities must pass at least 97 per cent of funding to providers.
At Budget 2025 the Government confirmed that the standard rules for calculating income tax would apply to childminders who are mandated into Making Tax Digital (MTD). HMRC engaged with stakeholders including Coram PACEY ahead of Budget 2025. We will phase in this change between 2026 and 2028, in line with the MTD income thresholds. The threshold from April 2026 is £50,000 of qualifying income, reducing to £30,000 from April 2027 and £20,000 from April 2028. Childminders not within MTD can continue to use existing arrangements if they wish.
Childminders within MTD can continue to claim tax relief for wear and tear by deducting the actual cost of buying, repairing or replacing items. They can also deduct the cost of business expenses such as utilities, cleaning and equipment. This ensures childminders receive tax relief for all of the costs that they incur in relation to their childminding business. Childminders may be better off deducting actual costs, if deductions under the existing arrangements are lower than their actual expenses.
HMRC will publish updated guidance for childminders in early 2026. Guidance on business expenses and on MTD for Income Tax is already available on GOV.UK. The Government will closely monitor the impacts of the policy over the course of the first year.
Asked by: James McMurdock (Independent - South Basildon and East Thurrock)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to review the structure of Vehicle Excise Duty.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Vehicle Excise Duty (VED), sometimes known as 'road tax' or 'car tax', is a tax on vehicles used or kept on public roads. Different rates apply to cars, vans, and motorcycles, and the rate for each vehicle is calculated according to a range of factors, such as its date of first registration, weight, or CO2 emissions. The government has no current plans to review this structure.
At Autumn Budget 2025, the government announced the introduction of Electric Vehicle Excise Duty (eVED), a new mileage charge for electric and plug-in hybrid cars, which will come into effect from April 2028. Drivers will pay for their mileage alongside their existing Vehicle Excise Duty (VED).
Asked by: James McMurdock (Independent - South Basildon and East Thurrock)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Valuation Office Agency's news story entitled Business rates revaluation 2026, updated on 22 January 2026, what assessment she has made of the potential impact of changes to business rates on the financial viability of small businesses in South Basildon and East Thurrock constituency.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since the pandemic, which has led to significant increases in rateable values for some properties as they recover from the pandemic.
To support with bill increases, the Government has introduced a generous support package worth £4.3 billion over the next 3 years, including support to help ratepayers to transition to their new bill. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.
The Government is introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £1 billion per year and will benefit over 750,000 properties.
From April, every pub and live music venue will get 15% off its new business rates bill on top of the support announced at Budget and then bills will be frozen in real terms for a further two years.
The Government is also supporting small businesses to grow. At Budget, the Government announced the extension of Small Business Rates Relief (SBRR) so that businesses opening second premises can retain their SBRR for three years, tripling the current allowance.
Asked by: James McMurdock (Independent - South Basildon and East Thurrock)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to her Department’s response of 17 November 2025 to the e-petition entitled Raise the income tax personal allowance from £12,570 to £20,000, what assumptions were used for (a) behavioural changes, (b) labour market participation and (c) projected tax receipts for the £50 billion per annum figure.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Personal Allowance is uprated in line with CPI by default. The previous Government took the decision to maintain the Personal Allowance at its current level from April 2021 until April 2028. The Government is asking everyone to contribute to maintain funding for the NHS and reduce debt, and it is doing this by maintaining the Personal Allowance for a further three years.
As set out in the e-petition response, the Government has no plans to increase the Personal Allowance to £20,000. Increasing the Personal Allowance to £20,000 would come at a significant fiscal cost. This would reduce tax receipts substantially, decreasing funds available for the UK’s hospitals, schools, and other essential public services that we all rely on.
Increasing the Personal Allowance to this level would undermine the work the Government has done to restore fiscal responsibility which is critical to getting our economy growing.
HM Treasury only provides impact assessments on Government policy. The OBR have made an assessment of the Government’s policy related to the Personal Allowance in the Economic and Fiscal Outlook.
The ‘£50 billion’ figure in the e-petition response (https://petition.parliament.uk/petitions/737513) provided an indicative idea of scale only and does not reflect a full costing as this is not Government policy. Data from the 2022-23 Survey of Personal Incomes and the Office for Budget Responsibility (OBR) economic forecast were used to inform this indicative estimate.
Asked by: James McMurdock (Independent - South Basildon and East Thurrock)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to her Department’s response of 17 November 2025 to the e-petition entitled Raise the income tax personal allowance from £12,570 to £20,000, whether her Department has assessed the potential long‑term impact of changes in labour market participation resulting from a higher Personal Allowance on the economy.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Personal Allowance is uprated in line with CPI by default. The previous Government took the decision to maintain the Personal Allowance at its current level from April 2021 until April 2028. The Government is asking everyone to contribute to maintain funding for the NHS and reduce debt, and it is doing this by maintaining the Personal Allowance for a further three years.
As set out in the e-petition response, the Government has no plans to increase the Personal Allowance to £20,000. Increasing the Personal Allowance to £20,000 would come at a significant fiscal cost. This would reduce tax receipts substantially, decreasing funds available for the UK’s hospitals, schools, and other essential public services that we all rely on.
Increasing the Personal Allowance to this level would undermine the work the Government has done to restore fiscal responsibility which is critical to getting our economy growing.
HM Treasury only provides impact assessments on Government policy. The OBR have made an assessment of the Government’s policy related to the Personal Allowance in the Economic and Fiscal Outlook.
The ‘£50 billion’ figure in the e-petition response (https://petition.parliament.uk/petitions/737513) provided an indicative idea of scale only and does not reflect a full costing as this is not Government policy. Data from the 2022-23 Survey of Personal Incomes and the Office for Budget Responsibility (OBR) economic forecast were used to inform this indicative estimate.
Asked by: James McMurdock (Independent - South Basildon and East Thurrock)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what criteria her Department uses when determining whether to uprate the Personal Allowance.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Personal Allowance is uprated in line with CPI by default. The previous Government took the decision to maintain the Personal Allowance at its current level from April 2021 until April 2028. The Government is asking everyone to contribute to maintain funding for the NHS and reduce debt, and it is doing this by maintaining the Personal Allowance for a further three years.
As set out in the e-petition response, the Government has no plans to increase the Personal Allowance to £20,000. Increasing the Personal Allowance to £20,000 would come at a significant fiscal cost. This would reduce tax receipts substantially, decreasing funds available for the UK’s hospitals, schools, and other essential public services that we all rely on.
Increasing the Personal Allowance to this level would undermine the work the Government has done to restore fiscal responsibility which is critical to getting our economy growing.
HM Treasury only provides impact assessments on Government policy. The OBR have made an assessment of the Government’s policy related to the Personal Allowance in the Economic and Fiscal Outlook.
The ‘£50 billion’ figure in the e-petition response (https://petition.parliament.uk/petitions/737513) provided an indicative idea of scale only and does not reflect a full costing as this is not Government policy. Data from the 2022-23 Survey of Personal Incomes and the Office for Budget Responsibility (OBR) economic forecast were used to inform this indicative estimate.
Asked by: James McMurdock (Independent - South Basildon and East Thurrock)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to her Department’s response of 17 November 2025 to the e-petition entitled Raise the income tax personal allowance from £12,570 to £20,000, what assessment her Department has made of the potential impact of raising the income tax threshold to £20,000 on absolute poverty levels.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Personal Allowance is uprated in line with CPI by default. The previous Government took the decision to maintain the Personal Allowance at its current level from April 2021 until April 2028. The Government is asking everyone to contribute to maintain funding for the NHS and reduce debt, and it is doing this by maintaining the Personal Allowance for a further three years.
As set out in the e-petition response, the Government has no plans to increase the Personal Allowance to £20,000. Increasing the Personal Allowance to £20,000 would come at a significant fiscal cost. This would reduce tax receipts substantially, decreasing funds available for the UK’s hospitals, schools, and other essential public services that we all rely on.
Increasing the Personal Allowance to this level would undermine the work the Government has done to restore fiscal responsibility which is critical to getting our economy growing.
HM Treasury only provides impact assessments on Government policy. The OBR have made an assessment of the Government’s policy related to the Personal Allowance in the Economic and Fiscal Outlook.
The ‘£50 billion’ figure in the e-petition response (https://petition.parliament.uk/petitions/737513) provided an indicative idea of scale only and does not reflect a full costing as this is not Government policy. Data from the 2022-23 Survey of Personal Incomes and the Office for Budget Responsibility (OBR) economic forecast were used to inform this indicative estimate.
Asked by: James McMurdock (Independent - South Basildon and East Thurrock)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the potential impact of the ineligibility of further education colleges to reclaim VAT on purchases linked to education and training on costs to those colleges.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
Further Education (FE) funding is vital to ensure people are being trained in the skills they need to thrive in the modern labour market. The 2025 Spending Review provided an additional £1.2 billion per year by 2028-29 for skills and £1.7 billion of capital funding to help colleges maintain the condition of their estate. In addition, the Government is providing £375 million of capital investment to support the FE system to accommodate increasing student numbers.
For their non-business activity, FE colleges are unable to reclaim VAT incurred. We operate several VAT refund schemes for schools and academies which are designed variously to ensure that VAT is not a burden on local taxation, and that academies are not disincentivised to leave LA control. FE colleges do not meet the criteria for either scheme.
In relation to business activity, FE colleges enjoy an exemption from VAT which means that they do not have to charge VAT to students, but cannot recover it either.
Asked by: James McMurdock (Independent - South Basildon and East Thurrock)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of levels of financial literacy in relation to pensions among the UK population.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Government is committed to supporting people to build their financial literacy.
As part of the Financial Inclusion Strategy, the Government announced plans to make financial education compulsory in primary schools in England through a new statutory requirement to teach citizenship, alongside a renewed focus on the subject in secondary schools in the subjects of mathematics and citizenship. The Department for Education will be engaging with sector experts and young people to determine how best to reflect this in the updated curriculum, including appropriate content on pensions and long-term saving. There will be a period of public consultation in 2026 before it is finalised.
The Financial Conduct Authority’s nationally representative Financial Lives Survey gathers insights into the financial behaviour, attitudes and experiences of adults aged 18 and over in the UK. It covers a wide range of topics, including financial capability and detailed information on how people engage with their pensions – such as their awareness, decision-making and approach to saving for retirement. Taken together, these findings provide an indication of financial literacy in the pensions context, although this is not measured as a standalone metric.
Building on these insights, the Money and Pensions Service (MaPS), an arm’s length body of Government, provides free, impartial financial guidance for consumers to support them at every stage of their financial lives. Its MoneyHelper services – available online, via webchat and over the phone – offers information on a wide range of financial topics, including pensions, along with easy-to-use tools and calculators to support people in managing their finances.