Asked by: Jess Phillips (Labour - Birmingham Yardley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will undertake a review of the Standard Industrial Classification codes that will be eligible for the Energy Bills Discount Scheme; and if he will take steps to include codes (a) 31020 for kitchen manufacturers and (b) 31090 for bathroom manufacturers in that scheme.
Answered by James Cartlidge - Shadow Secretary of State for Defence
The new Energy Bills Discount Scheme will provide all eligible businesses and other non-domestic energy users across the UK with a discount on high energy bills until 31 March 2024, following the end of the current Energy Bill Relief Scheme. It will also provide businesses in sectors with particularly high levels of energy use and trade intensity with a higher level of support.
We have taken a consistent approach to identifying the most energy and trade intensive sectors, with all sectors that meet agreed thresholds for energy and trade intensity eligible for Energy and Trade Intensive Industries (ETII) support. These thresholds have been set at sectors falling above the 80th percentile for energy intensity and 60th percentile for trade intensity, plus any sectors eligible for the existing energy compensation and exemption schemes.
Through the current Energy Bill Relief Scheme, the Government provided an unprecedented package of support for non-domestic users through this winter. The Government has been clear that such levels of support, unprecedented in its nature and huge scale, were time-limited and intended as a bridge to allow businesses to adapt.
The new scheme therefore strikes a balance between supporting businesses for a further 12 months, from April 2023 to March 2024, and limiting taxpayer’s exposure to volatile energy markets, with a cap set at £5.5 billion based on estimated volumes. This provides long term certainty for businesses and reflects how the scale of the challenge has changed since September last year. We will of course continue to monitor energy prices in the coming months.
Further details on the scheme, including information on eligibility and discount levels, can be found here: https://www.gov.uk/guidance/energy-bills-discount-scheme.
Asked by: Jess Phillips (Labour - Birmingham Yardley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking with Cabinet colleagues to support homeowners with rising mortgage rates.
Answered by Felicity Buchan
Around 75% of mortgage holders are on a fixed-rate mortgage, and will therefore be shielded from rate rises in the short term.
We are also taking steps to help everyone with cost-of-living pressures through the Energy Price Guarantee and the Energy Bills Support Scheme, in addition to £37 billion of targeted cost-of-living support this financial year.
Asked by: Jess Phillips (Labour - Birmingham Yardley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to support people who are having difficulty in paying back overpayments of working tax credits in the context of rising living costs.
Answered by Simon Clarke
Support is available for tax credits claimants who are experiencing difficulty with their repayments. HMRC can reduce the rate of repayment on a case-by-case basis where claimants are in financial hardship. HMRC also work to identify vulnerable customers and refer them to the Extra Support Team for assistance, with more information available here.
Where claimants with overpayments have migrated to Universal Credit, they can similarly contact DWP to discuss a reduction in their rate of repayment and may benefit from the cap on debt deductions which the government reduced to 25 per cent of the standard allowance in April 2021. Work coaches can also signpost other financial support.
Furthermore, the Government is providing significant financial support – up to £350 – to the majority of households which will cover more than half of the forecast £700 rise in energy bills for the average household. This support – worth £9.1bn in 2022-23 – is on top of the existing £12 billion support the government is providing for the cost of living this financial year and next. This includes reducing the Universal Credit taper rate, raising the National Living Wage, freezing alcohol and fuel duties and providing targeted help with energy bills.
Asked by: Jess Phillips (Labour - Birmingham Yardley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to offer small business a payment holiday or longer term repayment scheme for VAT contributions during the covid-19 outbreak.
Answered by Jesse Norman - Shadow Leader of the House of Commons
HMRC already offer help to businesses struggling to meet their VAT payments with arrangements such as Time to Pay. HMRC also have a dedicated helpline for those who cannot pay because of the coronavirus.
In light of the COVID-19 outbreak, the Chancellor has pledged a range of measures to help business through the crisis, including grants, loans and relief from business rates worth more than £300 billion. The Chancellor will continue to review and make further announcements as events unfold.