Asked by: Jonathan Reynolds (Labour (Co-op) - Stalybridge and Hyde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment his Department has made of the effect of reforming RPI to align with CPIH on employee pensions in (a) 2025 and (b) 2030.
Answered by John Glen
The Retail Prices Index (RPI) is a measure of inflation with a number of shortcomings. To address these shortcomings, the UK Statistics Authority (UKSA) has made a proposal to reform RPI by bringing the methods and data sources of the Consumer Prices Index including owner occupiers’ housing costs (CPIH) into RPI. Owing to the use of RPI in specific index-linked gilts, prior to 2030 the Chancellor’s consent to this proposal is required before it can be implemented.
At the Budget in March, the government and UKSA launched a consultation to consider whether UKSA’s proposal should be implemented at a date other than 2030, and, if so, when between 2025 and 2030. The consultation closed for responses on 21 August. As part of the consultation, the government has sought views on the broader impacts of the proposed reform of RPI.
The government and UKSA will respond to the consultation in the autumn.
Asked by: Jonathan Reynolds (Labour (Co-op) - Stalybridge and Hyde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether driving instructors will remain eligible for the second grant under the Self-Employment Income Support Scheme if (a) they choose not to return to providing lessons on 4 July as the covid-19 lockdown restrictions are eased and (b) if their business is significantly lower than before the covid-19 lockdown.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Self-Employment Income Support Scheme (SEISS) helps those adversely affected by COVID-19. Eligible self-employed driving instructors, and others whose businesses are adversely affected by COVID-19 on or after 14 July will be able to claim a second and final SEISS grant when the scheme reopens for applications in August.
A business would be adversely affected if its income is significantly lower because of COVID-19.
More information about when a business would be adversely affected can be found at https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme
and further examples can be found at
Asked by: Jonathan Reynolds (Labour (Co-op) - Stalybridge and Hyde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to bring forward legislative proposals to support businesses operating as (a) co-operatives and (b) mutuals during the covid-19 outbreak.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Chancellor has set out a package of temporary, timely and targeted measures to support public services, people and businesses through this period of disruption caused by COVID-19.
This package includes a £10,000 cash grant to the smallest businesses, delivered by local authorities. Small businesses, including co-operatives, that pay little or no business rates and are eligible for small business rate relief or rural rate relief will be contacted by their local authority; they do not need to apply. The funding will be provided to local authorities in early April.
The package also includes the Coronavirus Business Interruption Loan Scheme (CBILS), offering loans of up to £5 million for SMEs through the British Business Bank (BBB). Where co-operatives meet the eligibility conditions, including operating within an eligible industrial sector, they may be eligible for loans under CBILS. Final decision-making on whether a small business is eligible for CBILS is delegated to the accredited lender.
The Government recognises the value of co-operatives and mutuals, and officials will continue to engage with representatives from across the sector to understand the impact of the disruption caused by COVID-19.
Asked by: Jonathan Reynolds (Labour (Co-op) - Stalybridge and Hyde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the estimated annual cost of providing tax relief to beneficiaries on pension pots inherited before the recipient is 75.
Answered by John Glen
Since April 2015, individuals were able to pass on their unused defined contribution pension savings up to their Lifetime Allowance to any nominated beneficiary when they die, instead of paying the 55 per cent Income Tax charge which applied to most cases prior to that date.
The Exchequer cost of this change was set out at Autumn Statement 2014. In particular, information has been published on page 46 of the ‘Autumn Statement 2014 policy costings’ document, available here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/384071/AS2014_policy_costings_final.pdf