Asked by: Laura Smith (Labour - Crewe and Nantwich)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made of the reasons for the time taken for HMRC to notify people affected by the high-income child benefit charge of the money to be repaid.
Answered by Elizabeth Truss
The High Income Child Benefit Charge (HICBC) was introduced to ensure that support is targeted at those who need it most. It applies to anyone with an income over £50,000 who claims Child Benefit, or whose partner claims Child Benefit. The tax charge increases gradually for taxpayers with incomes between £50,000 and £60,000.
Families in which at least one taxpayer has an income over £60,000 can choose not to receive the Child Benefit, which means that they do not have to pay the tax charge at all. Those who continue to receive Child Benefit must register for Self Assessment to declare their Child Benefit payments and pay the tax charge through their tax return. HM Revenue and Customs (HMRC) encourages customers to contact it straightaway to pay the tax charge and the vast majority do so.
Information on HICBC widely available, including in packs for new parents telling them how to claim Child Benefit, as well as on the Child Benefit claim form itself. Guidance is also available online on gov.uk.
HMRC has a duty to apply tax legislation fairly and in an even-handed way, and takes every opportunity to make individuals aware of their responsibilities, including notifying of any taxes due.
Asked by: Laura Smith (Labour - Crewe and Nantwich)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made of the implications for his policies on public service pensions of the judgment in relation to Mcloud v Lord Chancellor and Secretary of State for Justice.
Answered by Elizabeth Truss
The Government is disappointed with the ruling of the Employment Appeal Tribunal in McCloud v. Lord Chancellor and Secretary of State for Justice and has appealed the judgment to the Court of Appeal.
Asked by: Laura Smith (Labour - Crewe and Nantwich)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, when he plans to launch the Government's public consultation into the VAT registration threshold.
Answered by Mel Stride - Secretary of State for Work and Pensions
As announced at Autumn Budget 2017, the Government will publish a consultation on the VAT registration threshold in 2018.
Asked by: Laura Smith (Labour - Crewe and Nantwich)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, whether he plans to bring forward legislative proposals for a total cost cap on credit cards of 100 per cent of the original sum borrowed.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The regulation of consumer credit, including credit cards, is a matter for the Financial Conduct Authority (FCA). The Government has given the FCA strong powers to protect consumers, including the power to cap all forms of consumer credit, and the FCA can do so if it thinks it is necessary to protect consumers.
The Government welcomes the FCA’s extensive Credit Card Market Study which identified concerns about persistent credit card debt. The FCA is consulting on remedies, which include encouraging customers to repay more quickly; earlier identification of customers at risk of financial difficulty; and help for customers in persistent debt with escalating measures at 18, 28, and 36 months. The FCA’s proposals also include a voluntary industry agreement to give customers more control over credit limit increases.
The FCA is not proposing a price cap as it considers that its proposals are more likely to address the consumer harm it has identified. The Government will continue to work with the FCA to ensure that customers are treated fairly.
Asked by: Laura Smith (Labour - Crewe and Nantwich)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made of the effect of rising household debt on levels of child poverty.
Answered by Elizabeth Truss
The proportion of people in absolute poverty is at record lows. Since 2010 there are 600,000 fewer people, with 200,000 fewer children, in absolute poverty. Work is the most effective way out of poverty and unemployment has not been lower since 1975. We are helping people retain more of what they earn by raising the personal allowance, successive increases mean that a basic rate tax payer will be £1,075 better off in 2018-19 than in 2010-11, and to help with the cost of living we are also freezing tax on fuel and alcohol. To support working parents we are introducing Tax Free Childcare, providing support of up to £2000 per year for each child, and are doubling free childcare available for 3 and 4 year olds to 30 hours a week, saving in total around £5,000 a year per child. We are also banning letting agent fees and have published a draft bill to require Ofgem to implement a cap on standard variable and default energy tariffs. However, there is more to do and the government is committed to delivering a country that works for everyone. Last April, the government published its “Improving Lives: Helping Workless Families” strategy. This focused on measures that tackle the root causes of poverty, including specifically problem debt.
Asked by: Laura Smith (Labour - Crewe and Nantwich)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what steps he has taken to increase the ability of regulators and consumer enforcement bodies to order fines against companies that have been found to have broken consumer law and to deliver redress.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Financial Conduct Authority (FCA) has been given a wide range of enforcement powers to protect consumers and to take action against firms and individuals that breach the FCA’s rules – including rules on consumer protection - through the Financial Services and Markets Act (2000), as amended by the Financial Services Act (2012),
Such action includes issuing fines against firms and individuals. In the calendar year 2017, the FCA issued fines totalling £229,515,303.
The Financial Ombudsman Service (FOS) was set up by the Government to resolve individual complaints between financial services firms and their customers. If the FOS decide that a consumer has been treated unfairly, it has legal powers to force the firm to pay redress to the consumer.
Asked by: Laura Smith (Labour - Crewe and Nantwich)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, whether he plans to reduce the cap on the cost of credit offered by payday lenders.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The Government placed a duty on the Financial Conduct Authority (FCA) to cap the cost of payday loans. As a result, this is a matter for the FCA, who are operationally independent from Government. The question has been passed on to the FCA. The FCA will reply directly to the honourable member by letter. A copy of the letter will be placed in the Library of the House.