Asked by: Neil Gray (Scottish National Party - Airdrie and Shotts)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions he has had with the Financial Conduct Authority on the support and protection given to people living with cancer by the financial services sector.
Answered by John Glen
The Government is committed to doing whatever it takes to get our nation through this crisis and that includes supporting the most vulnerable in our society. To this end, the Government continues to work closely with financial services regulators as part of the economic response.
The Financial Conduct Authority (FCA) has introduced measures supporting consumers in financial difficulty at this time, and require firms to prioritise vulnerable consumers, including those with poor health.
In response, firms across the financial services sector have announced a range of measures to support vulnerable customers and the Government is working with the FCA to ensure there is continued support. For example, many firms have methods for trusted third-parties to access cash for vulnerable/self-isolating people, as well as setting up dedicated phone lines to support them.
Since the COVID-19 crisis has developed, the Government has also worked closely with the FCA on the introduction of payment deferral periods to provide support to consumers who are facing temporary cash flow problems as a result of the COVID-19 outbreak.
Asked by: Neil Gray (Scottish National Party - Airdrie and Shotts)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the Government plans to top up the wages of workers who have had their normal hours reduced during the covid-19 outbreak; and if he will make a statement.
Answered by Jesse Norman - Shadow Leader of the House of Commons
Workers who see a fall in earnings due to a reduction in their work hours may become eligible for support through the welfare system, including through Universal Credit (UC). Existing UC claimants are likely to receive a higher award as a result of a fall in earnings. For employed claimants this will be updated automatically using information from the PAYE system
In response to the crisis, the Government has strengthened the welfare system, including by increasing the UC standard allowance and the Working Tax Credit basic element by £20 per week. In addition, to protect people’s jobs and incomes as far as possible during the crisis, the Government has announced a Coronavirus Job Retention Scheme and a Self-Employment Income Support Scheme.
Asked by: Neil Gray (Scottish National Party - Airdrie and Shotts)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to ensure that public sector workers can be furloughed under the Coronavirus Job Retention Scheme.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Government expects that the Coronavirus Job Retention Scheme will not be used by many public sector organisations, as most public sector employees are continuing to provide essential public services, or contribute to the response to the coronavirus outbreak. Where employers receive public funding for staff costs, and that funding is continuing, the Government expects employers to use that money to continue to pay staff in the usual fashion, and not to furlough them. This also applies to non-public sector employers who receive public funding for staff costs. Organisations who are receiving public funding specifically to provide services necessary to respond to coronavirus are not expected to furlough staff. In a small number of cases, for example where organisations are not primarily funded by the Government and whose staff cannot be redeployed to assist with the coronavirus response, the scheme may be appropriate for some staff.
Asked by: Neil Gray (Scottish National Party - Airdrie and Shotts)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the effect of key workers who are in receipt of tax credits and who are taking on additional hours to support the fight against covid-19 on their tax credit payments going forward.
Answered by Steve Barclay
The Tax Credit system has a degree of flexibility built in, in order to help claimants manage changes in income. The Tax Credit disregard means that the first £2,500 of an increase or decrease in household income, compared with the previous tax year is disregarded. Therefore, carers, NHS staff and other key workers who take on additional hours and experience an increase in income of up to £2,500 per year will see no change in their overall Tax Credit award.
The Government also recognises that Tax Credits were introduced in the early 2000s and no longer fully reflect the world of work for many people. That is why we are introducing Universal Credit.
Universal Credit replaces Tax Credits and other legacy benefits, to provide a single system of means tested support for working age people. Universal Credit is assessed and paid monthly and is based on claimants’ actual earnings in the month, rather than their annual income.
Asked by: Neil Gray (Scottish National Party - Airdrie and Shotts)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will publish a response to EDM 268 on Fair tax and employee share ownership.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The administration of the tax system is a matter for HM Revenue and Customs, who have indicated that they are in dialogue with the taxpayer mentioned in EDM 268; it would not be appropriate for Treasury ministers to comment on the specific case raised by the EDM.
Asked by: Neil Gray (Scottish National Party - Airdrie and Shotts)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to promote employee share ownership schemes; and if he will make a statement.
Answered by Jesse Norman - Shadow Leader of the House of Commons
I refer the Honourable Member to my written answer of 24 March 2020:
Asked by: Neil Gray (Scottish National Party - Airdrie and Shotts)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to protect participants in employee share ownership schemes from losing their tax relief when a trustee acts in breach of trust; and if he will make a statement.
Answered by Jesse Norman - Shadow Leader of the House of Commons
I refer the Honourable Member to my written answer of 19 March 2020:
Asked by: Neil Gray (Scottish National Party - Airdrie and Shotts)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what progress his Department been made on the dispute between HMRC and the Roadchef Employee Benefits Trust since the meeting between the Financial Secretary, the hon. Member for Airdrie and Shotts and the Chairman of the Trust; and if he will make a statement.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The administration of the tax system is a matter for HM Revenue and Customs, who have indicated that they are in dialogue with the taxpayer. It would not be appropriate for Treasury ministers to become involved in the administration of the tax system in specific cases.
Asked by: Neil Gray (Scottish National Party - Airdrie and Shotts)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether universal credit (a) repayments and (b) deductions will be included in the criteria for the Breathing Space Scheme.
Answered by John Glen
Breathing Space will cover a broad range of debts including those owed to central and local government. It is the government’s intention to include Universal Credit advances and third-party deductions in Breathing Space, alongside other benefit deductions designed to recover debt.
The government has committed to laying regulations on Breathing Space by the end of the year in order to commence the policy from early 2021. To ensure that the required IT changes align with the wider Universal Credit programme, Universal Credit advances and third-party deductions will be included in Breathing Space on a phased basis following the commencement of the wider scheme.