Asked by: Rupa Huq (Labour - Ealing Central and Acton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of providing a targeted financial support package for (a) people living with multiple sclerosis and (b) their carers.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government understands that people across the UK and especially the most vulnerable members of society, such as those suffering from long-term health conditions and their carers, are worried about the rising cost of living. That is why the Government is taking decisive action to get households through this winter, while ensuring we act in a fiscally responsible way.
If individuals have extra-costs arising from multiple sclerosis, then they may qualify for disability benefits such as Personal Independence Payments (PIP). People in receipt of extra-costs disability benefits such as PIP, Attendance Allowance or Disability Living Allowance (DLA) will receive a one-off Disability Cost of Living Payment of £150 from 20th September, to help disabled people with the rising cost of living. The DWP has already processed around 6 million such payments. Carers will also benefit from this payment if they live in the same household as the person for whom they care.
A one-off £650 Cost of Living Payment is also being delivered to those on means-tested benefits. Individuals who have limited ability to work because of their health condition, and are in receipt of means-tested benefits such as income-related Employment and Support Allowance or the Universal Credit Health top up, are eligible for this support. Carers with low incomes and in receipt of qualifying benefits such as Universal Credit will also benefit from this Cost of Living Payment.
Those living with a long-term health condition such as multiple sclerosis, and their carers, can also benefit from other forms of non-means-tested support which the Government is providing to assist with household energy bills. We have taken decisive action to support millions of households with rising energy costs this winter through the Energy Price Guarantee. In addition to the Energy Price Guarantee, millions of the most vulnerable households will receive further support this year through the £400 Energy Bills Support Scheme. The £150 Council Tax rebate will also mean that all households in Council Tax bands A-D will receive a rebate, and 99% of eligible households have already received this. Lastly, to support households who need further help or who are not eligible for elements of the wider package of support, the Government is also providing an extra £500 million of local support to help with the cost of essentials until the end of March 2023, via the Household Support Fund.
We are continuing to keep the situation under review and are focusing support on the most vulnerable whilst ensuring we act in a fiscally responsible way.
Asked by: Rupa Huq (Labour - Ealing Central and Acton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of legislating to require HMRC to pay Research and Development tax credits within 40 days.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
HMRC changed its Research and Development tax credit service level commitment from 28 to 40 days in April 2022. This followed a suspected criminal attack on the small and medium sized company scheme, which led to the introduction of additional security checks to prevent fraud.
HMRC aims to reintroduce its commitment to process 95 per cent of claims within 28 days as soon as possible.
The need for operational flexibility to respond quickly to challenges like this means that it would not be appropriate to set a target in legislation. Legislating a fixed timeline could result in more paid out on error and fraud.
Asked by: Rupa Huq (Labour - Ealing Central and Acton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of lifting constraints on commodity market speculation introduced following the 2008 (a) finance and (b) food price crisis.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Government believes effective commodities markets regulation is a key part of ensuring economic stability. This is a lesson reinforced by both the food and financial crises in the 2000s. In response to G20 commitments, the EU put in place a regime that sets limits on the amounts of commodity derivatives that market participants can hold, to ensure speculation does not lead to economic harm.
The Government supports the application of position limits to the most volatile commodities (including key energy and agricultural products). However, the regime that we have inherited from the EU is overly complicated, needlessly burdensome and poorly designed. In particular, it unnecessarily captures all exchange traded and economically equivalent over-the-counter commodity derivative contracts including those that have low levels of low volatility and risk. This undermines efficient pricing in many such contracts and creates burdens for firms.
To address this, the Financial Services and Markets Bill will ensure exchanges can once again set position limits, within an FCA framework. Exchanges are well placed to ensure that such position limits only apply to contracts that are subject to high volatility. Agricultural products and other key physically settled contracts such as oil and gas will remain subject to position limits. The FCA will also powers to intervene to set position limits if need be.
These changes were consulted on and received broad support[1] and is in line with the Government’s G20 commitments.
[1] Wholesale Markets Review Consultation: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/998165/WMR_condoc_FINAL_OFFICIAL_SENSITIVE_.pdf
Wholesale Markets Review Response: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1057897/Wholesale_Markets_Review_Consultation_Response.pdf
Asked by: Rupa Huq (Labour - Ealing Central and Acton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions he has had with the Secretary of State for Business, Energy and Industrial Strategy about the operation of the business rates system; and if he will make an assessment of the potential benefits for businesses of a reform of the business rates system.
Answered by Lucy Frazer - Secretary of State for Culture, Media and Sport
The Final Report of the Business Rates Review was published at Autumn Budget 2021. The report reaffirms the importance of business rates for raising revenue for essential local services and announces a package of changes worth £7 billion over the next 5 years.
The review has implemented significant new measures to reduce the burden of business rates on firms, including a freeze in the multiplier, new support for improvements and green technology, and further relief for high street businesses. The Government is committing to more frequent revaluations, which represents significant reform of the system and will ensure that liabilities are more responsive to changing market conditions. This addresses a key ask of stakeholders for more frequent revaluations, and to reduce the burden of business rates to make the system fairer.
As with all elements of tax policy, the Government keeps this under review.
Asked by: Rupa Huq (Labour - Ealing Central and Acton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will review the mileage allowance rates for self-employed people in the context of recent increases in the cost of fuel.
Answered by Alan Mak - Minister of State (Department for Business and Trade) (jointly with the Cabinet Office)
Self-employed people can get tax relief for fuel and other business motoring expenses using either the simplified mileage rate or by claiming capital allowances and actual expenses. The mileage rate is an easier way of calculating the costs of owning and running a vehicle for tax purposes, intended to balance accuracy with administrative simplicity for businesses by using an average. This means that the rate will be more appropriate for some drivers than for others. Fuel is only one component of the rate, as it also covers the business proportion of other motoring costs such as servicing, insurance and depreciation.
The Government keeps all taxes under review, including the simplified mileage rate for the self-employed.
Asked by: Rupa Huq (Labour - Ealing Central and Acton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has had discussions with the Secretary of State for Health and Social Care on the potential merits of increasing spending on mental health research for the next five years.
Answered by Simon Clarke
HM Treasury ministers are frequently in contact with Department for Health and Social Care ministers on a wide range of issues, including mental health research. HM Treasury ministers will continue to engage with Department for Health and Social Care ministers on these matters.
Asked by: Rupa Huq (Labour - Ealing Central and Acton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of increasing financial support via the Tax-Free Childcare scheme for parents in London in the context of the rise in the cost of childcare in London relative to other parts of England.
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.
In addition, 15 hours of free childcare per week is available for all three- and four-year-olds regardless of circumstance and an additional 15 hours of free childcare per week is available for working parents of three- and four-year-olds. Some parents can also access the disadvantaged 2-year-old offer which gives 15 hours of free childcare per week to 2-year-olds who meet certain social and economic criteria. Universal Credit claimants are able to claim up to 85% of their childcare costs.
As Tax-Free Childcare is a UK-wide offer, the level of financial support it provides has been set at the same level to avoid arbitrary cut-offs between different regions.
Asked by: Rupa Huq (Labour - Ealing Central and Acton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of publishing company car tax rates on battery electric cars beyond the the 2024-2025 tax year.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
Like all taxes, benefit-in-kind tax rates for company cars, also known as Company Car Tax (CCT), are kept under review. The Government aims to announce CCT rates at least two years ahead of implementation to provide certainty for employers, employees and fleet operators.
Asked by: Rupa Huq (Labour - Ealing Central and Acton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential merits of temporarily limiting the ability of private creditors to sue for debt recovery for low-income countries.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government is fully focused on ensuring that the private sector provides debt relief for low-income countries where this is required as part of an internationally agreed debt treatment. For example, under the Common Framework for Debt Treatments beyond the DSSI, private sector participation on at least as favourable terms as bilateral creditors is a fundamental principle. The G20, including the UK, has repeatedly emphasised the importance of this principle.
The Government does not currently have any intention to pursue a legislative approach that would force private lenders to participate in debt relief initiatives. Any legislative approach would need to address a number of challenges. For example, legislating may increase the cost of finance for low-income countries or reduce the availability of finance to meet wider development goals.
Asked by: Rupa Huq (Labour - Ealing Central and Acton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the potential merits of providing additional financial support to unpaid carers.
Answered by Simon Clarke
The Government recognises the challenges that some carers are facing due to the rising cost of living and values the vital contribution made by carers to society. That is why millions of the most vulnerable households, including carers, will receive at least £1,200 of one-off support in total this year to help with the cost of living. Nearly 60% of the 1 million working age Carer’s Allowance recipients receive a means-tested benefit, a disability benefit, or both and will therefore benefit from one or both of the £650 Means-Tested Benefit Cost of Living Payment and the £150 disability Cost of Living Payment. Carers with a pensioner in the household will benefit from an extra £300 Pensioner Cost of Living Payment and carers will benefit from the £400 per household universal support provided through the Energy Bills Support Scheme.
Previously announced measures to help people tackle the cost of living will also benefit carers, including cuts to the Universal Credit (UC) taper rate, frozen alcohol duty and fuel duty, raising the NICs threshold, council tax rebates and the rise in the National Living Wage to £9.50 an hour.
For carers that are not eligible for Cost of Living Payments or for those that still need additional support, the government is providing an extra £500 million of local support, via the Household Support Fund. The Fund will be extended from this October to March 2023, bringing total funding for the scheme to £1.5 billion.