Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what assessment he has made of the likely effect of the rise in insurance premium tax on lower-income individuals.

Insurance Premium Tax is a tax on insurers so any impact on individuals depends on how and whether insurers pass on the rate increase in the form of higher premiums.

A Tax Information and Impact Note has been published and is available at: https://www.gov.uk/government/publications/insurance-premium-tax-increase-of-standard-rate. If insurers pass on the full rate increase, this would cost households in the bottom income decile 19p per week (£9.63 per year).