Asked by: Stella Creasy (Labour (Co-op) - Walthamstow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the tax-free childcare scheme, how many (a) active accounts and (b) children eligible there were for that scheme on 31 March in each of the last 5 years.
Answered by Simon Clarke
Tax-Free Childcare began to be rolled out from April 2017.
The figures for Open and Used accounts for Tax-Free Childcare are published in Official Statistics (latest release November 2021 for figures up to September 2021).
The estimated figures for eligible children from 2017-18 onwards, as well as the annual Open and Used account figures can be found in the table below.
Number of (000s) | Financial Year | |||
2017-18 | 2018-19 | 2019-20 | 2020-21 | |
Children with Open Accounts | 314 | 537 | 768 | 901 |
Children with Used Accounts | 72 | 203 | 396 | 462 |
Eligible Children | 1,800 | 1,900 | 1,900 | 1,700 |
Asked by: Stella Creasy (Labour (Co-op) - Walthamstow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 16 November 2021 to Question 72406, how many and what proportion of user accounts for the tax-free childcare scheme that have not had their details reconfirmed in the last three months relate to children under the age of 12.
Answered by Simon Clarke
There were 125,800 accounts that had reached the end of an eligibility period but had not reconfirmed details between 1st August and 31st October 2021. Of these, 125,300 or over 99% relate to children aged under 12 on 31st October.
There can be many reasons why a family might not reconfirm their account in a 3-month period. For example, there may have been changes to their childcare arrangements or their working arrangements which mean they are no longer eligible for TFC or don’t need it. They may still reactivate and use their TFC account in a future period.
Asked by: Stella Creasy (Labour (Co-op) - Walthamstow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the tax-free childcare scheme, how many user accounts have been closed as a result of inactivity in each of the last five years; and what proportion of those accounts concerned families where the children being claimed for were over the age of 11.
Answered by Simon Clarke
No Tax Free Childcare accounts have been closed due to inactivity over the past 5 years.
Accounts are only closed when a customer requests it or where remediation has occurred, for example to remove duplicate accounts.
Asked by: Stella Creasy (Labour (Co-op) - Walthamstow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will publish the (a) forecasted expenditure and (b) actual expenditure for the tax-free childcare scheme for financial year 2020-21.
Answered by Simon Clarke
At the Spring 2020 budget, the forecast expenditure for Tax-Free Childcare in 2020/21 was £0.34bn. Tax-Free Childcare expenditure in 2020/21 was £0.24bn.Asked by: Stella Creasy (Labour (Co-op) - Walthamstow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the total level of debt owed to buy now pay later firms at the end of (a) February 2021 and (b) August 2021.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
HM Treasury does not hold information on the number of people accessing financial products through Buy-Now-Pay-Later firms, the number of people referred to debt collection agencies by Buy-Now-Pay-Later firms, or the total level of debt owed to Buy-Now-Pay-Later firms.
On 2 February, the Government announced its intention to regulate Buy-Now-Pay-Later products. On 17 March, the Government tabled an amendment to the Financial Services Bill (now Act) to allow the Government to bring Buy-Now-Pay-Later products into the scope of FCA regulation in a proportionate way. Treasury and FCA are now working closely to publish a consultation document soon.
Asked by: Stella Creasy (Labour (Co-op) - Walthamstow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the number of people referred to debt collection agencies by buy now pay later firms in each of the last 12 months.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
HM Treasury does not hold information on the number of people accessing financial products through Buy-Now-Pay-Later firms, the number of people referred to debt collection agencies by Buy-Now-Pay-Later firms, or the total level of debt owed to Buy-Now-Pay-Later firms.
On 2 February, the Government announced its intention to regulate Buy-Now-Pay-Later products. On 17 March, the Government tabled an amendment to the Financial Services Bill (now Act) to allow the Government to bring Buy-Now-Pay-Later products into the scope of FCA regulation in a proportionate way. Treasury and FCA are now working closely to publish a consultation document soon.
Asked by: Stella Creasy (Labour (Co-op) - Walthamstow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the number of people accessing financial products through buy now pay later firms in each of the last 12 months.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
HM Treasury does not hold information on the number of people accessing financial products through Buy-Now-Pay-Later firms, the number of people referred to debt collection agencies by Buy-Now-Pay-Later firms, or the total level of debt owed to Buy-Now-Pay-Later firms.
On 2 February, the Government announced its intention to regulate Buy-Now-Pay-Later products. On 17 March, the Government tabled an amendment to the Financial Services Bill (now Act) to allow the Government to bring Buy-Now-Pay-Later products into the scope of FCA regulation in a proportionate way. Treasury and FCA are now working closely to publish a consultation document soon.
Asked by: Stella Creasy (Labour (Co-op) - Walthamstow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions his Department has had with the Competition and Markets Authority on the regulation of buy now pay later companies.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Treasury Ministers and officials have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery. Details of ministerial and permanent secretary meetings with external organisations on departmental business are published on a quarterly basis and are available at: HMT ministers' meetings, hospitality, gifts and overseas travel - GOV.UK (www.gov.uk)