Asked by: Owen Thompson (Scottish National Party - Midlothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the Government will adopt the NHS Agenda for Change mileage reimbursement rates.
Answered by Alan Mak - Minister of State (Department for Business and Trade) (jointly with the Cabinet Office)
Approved Mileage Allowance Payments (AMAPs) are used by employers to reimburse an employee’s expenses for business mileage in their private vehicle.
AMAPs are intended to create administrative simplicity and certainty by using an average rate, which reflects vehicle running costs including fuel, servicing and depreciation. Fuel is therefore only one component.
The AMAP rate is advisory and employers can choose to pay more or less than the advisory rate – it is therefore ultimately up to employers to determine the rate at which they reimburse their employees. Employees who receive less than the AMAP rate can claim tax relief on the difference. Employees who receive more will be taxed on the difference.
Like all taxes and allowances, the Government keeps the AMAP rate under review.
Asked by: Owen Thompson (Scottish National Party - Midlothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential financial impact on local authorities of maintaining the present Approved Mileage Allowance Payment rate.
Answered by Alan Mak - Minister of State (Department for Business and Trade) (jointly with the Cabinet Office)
Approved Mileage Allowance Payments (AMAPs) are used by employers to reimburse an employee’s expenses for business mileage in their private vehicle.
AMAPs are intended to create administrative simplicity and certainty by using an average rate, which reflects vehicle running costs including fuel, servicing and depreciation. Fuel is therefore only one component.
The AMAP rate is advisory and employers can choose to pay more or less than the advisory rate – it is therefore ultimately up to employers to determine the rate at which they reimburse their employees. Employees who receive less than the AMAP rate can claim tax relief on the difference. Employees who receive more will be taxed on the difference.
Like all taxes and allowances, the Government keeps the AMAP rate under review.
Asked by: Owen Thompson (Scottish National Party - Midlothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to review the tax-free childcare allowance with a view to increasing it from the current £2000 per child per year.
Answered by Simon Clarke
Tax Free Childcare provides financial support for working parents with their childcare costs. For every £8 parents pay into their childcare account, the government adds £2 up to a maximum of £2,000 in top up per year for each child aged up to 11, and up to £4,000 per disabled child until they’re 17. The Government spent £43 million on TFC top-up for families in March 2022 (the most recent data). The £2,000 Tax-Free Childcare top-up, which can be claimed per year and per child, was set at this level because the Government believes it strikes the right balance between helping parents with their childcare costs, and managing the public finances in a responsible way.
The Government is committed to supporting working parents and has recently announced a renewed campaign – via the Childcare Choices website - so parents who are eligible for Tax-Free Childcare but not using it yet can benefit from this support.
Asked by: Owen Thompson (Scottish National Party - Midlothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the impact of the rise in the cost of living on personal debt levels.
Answered by Richard Fuller
The Government is committed to monitoring and understanding personal debt levels in the UK, including the impact of cost-of-living pressures, and help individuals access appropriate guidance and support if they need help to get their finances back on track. Different organisations measure and define personal debt and problem debt in different ways. HM Treasury do not hold data on levels of personal debt or problem debt but monitors these measures regularly by working closely with the Money and Pensions Service, the Financial Conduct Authority and by engaging regularly with many other stakeholders on their research and findings.
MaPS undertakes an annual survey of Debt Need to understand how many people are facing financial difficulties and to better understand their characteristics, needs and preferences. The most recent survey indicated that 16% (around 8.5 million) of the UK adult population needed debt advice, with a further 20% (around 10.6 million) ‘at risk’ and likely to need help if their situation deteriorates. The summary of their findings can be found in the link below:
Who needs debt advice in 2022? | The Money and Pensions Service (maps.org.uk)
MaPS also intends to publish constituency-level results later this year.
Asked by: Owen Thompson (Scottish National Party - Midlothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential impact of his Department's policies during the covid-19 outbreak on people who were ineligible to claim Government financial support in that period.
Answered by Simon Clarke
Throughout the pandemic, the Government sought to protect people’s jobs and livelihoods while also supporting businesses and public services across the UK. To do this, the Government has provided up to £400 billion of direct support for the economy.
The Government is evaluating the delivery and impact of these schemes to ensure we learn lessons for the future. For example, the Government has already published a plan to evaluate the Coronavirus Job Retention Scheme (CJRS). The Government is also carrying out an evaluation of the Self-Employment Income Support Scheme (SEISS) which will be published in due course.
The Government will continue to learn these lessons through formal evaluations and reports by independent bodies, such the National Audit Office, and through the work of the UK Covid-19 Public Inquiry.
Asked by: Owen Thompson (Scottish National Party - Midlothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the impact of the cost of living crisis on people who were ineligible to claim Government financial support during the covid-19 outbreak.
Answered by Simon Clarke
Throughout the pandemic, the Government sought to protect people’s jobs and livelihoods while also supporting businesses and public services across the UK. To do this, the Government has provided up to £400 billion of direct support for the economy.
COVID-19 support schemes were designed at pace at the outset of the pandemic in order to get as much support to as many people as possible, to target support for those who needed it most and to protect the taxpayer against error, fraud and abuse.
The government understands that people across the UK, including those most impacted by the pandemic are worried about the rising cost of living. In May, we announced over £15 billion of additional cost of living support, targeted at those with the greatest need. As a result, millions of vulnerable households will receive at least £1,200 of support this financial year, with the vast majority of households receiving at least £550.
This built on the over £22 billion previously announced, meaning government support for the cost of living now totals over £37 billion this year, equivalent to 1.5% of GDP.
Asked by: Owen Thompson (Scottish National Party - Midlothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to provide any further support to people in arrears on fuel and electricity bills.
Answered by Alan Mak - Minister of State (Department for Business and Trade) (jointly with the Cabinet Office)
The Government recognises that millions of households across the UK have been impacted by rising energy bills and the wider cost of living. That is why the Government is providing over £15 billion in further support, targeted particularly on those with the greatest need. This package is in addition to the over £22 billion announced previously, with government support for the cost of living now totalling over £37 billion this year. The package includes:
The Government has also expanded and increased the Warm Home Discount. Three million vulnerable households will now receive £150 each year. The Government’s objective for the Warm Home Discount is to focus the support towards those on the lowest incomes and in, or at greatest risk, of fuel poverty.
The Government expects and encourages energy suppliers to make it their priority to work actively to move customers with large arrears balances onto repayment plans wherever possible. This is already an Ofgem licence condition for suppliers.
The Government is monitoring a range of pressures on households, including the cost of energy, and as we move into winter we will continue to listen to people’s concerns.
Asked by: Owen Thompson (Scottish National Party - Midlothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will hold discussions with Cabinet colleagues on setting a timetable for amending the rules on entitlement to a Widow’s or Widower’s Pension for people who remarry.
Answered by Richard Fuller
There are currently no plans to amend existing rules regarding the treatment of survivor pensions upon remarriage in public service pension schemes (PSPS). While some PSPS include provisions for ceasing the payment of survivor pensions upon remarriage, these have been removed in reformed PSPS introduced from 2015.
Asked by: Owen Thompson (Scottish National Party - Midlothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential merits of adopting equal tax treatment for beer and cider.
Answered by Alan Mak - Minister of State (Department for Business and Trade) (jointly with the Cabinet Office)
The Government is currently undertaking a review of alcohol duties in order to simplify the system and make it fairer overall, including ensuring beer and cider both pay duty according to their alcoholic strength.
Asked by: Owen Thompson (Scottish National Party - Midlothian)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of changing the Advisory Electric Rate each quarter in order to reflect changes in energy prices.
Answered by Alan Mak - Minister of State (Department for Business and Trade) (jointly with the Cabinet Office)
The Government introduced the Advisory Electric Rate (AER) in 2018. It applies to employees who use a fully electric vehicle as a company car.
The Advisory Electric Rate (AER) was changed in December 2021 from 4 pence per mile (ppm) to 5ppm. This was calculated using published consumption rates, adjusted to reflect real driving conditions, and the average cost of electricity.
However, employers are not required to use the AER. Instead, they can use different rates to reflect their employee’s circumstances. Provided they show that the bespoke rates do not result in a profit for the employee, there will be no tax to pay.
The Government keeps this policy under review.