← LEADERSHIP TERMINAL

UK PARLIAMENT · SITTING

Victoria Atkins

MP for Louth and Horncastle · Conservative · United Kingdom

IN THEIR OWN WORDS

Oh dear. This may be the last time the Secretary of State gets to give such an inadequate answer to what is a reasonable question about her grip on her Department. But let us look at Labour’s wider chaos.

TOPICAL QUESTIONS · 2026-07-09 · READ IN HANSARD

In recent weeks, DEFRA’s quangos have made headlines: the Environment Agency is failing to prosecute waste criminals, instead going after virtuous volunteers who are cleaning up the rivers for it; Natural England is demanding more madcap fish schemes at Hinkley Point C, on top of its recommended £700 million fish disco policy, all of whic…

TOPICAL QUESTIONS · 2026-07-09 · READ IN HANSARD

There are many questions still left unanswered in this report, and I hope that the Secretary of State will try to answer them rather than deflect, because that has been noticed. The plan looks to double the funding for Environment Agency inspections. Why are this Government focusing on bureaucracy rather than helping farmers survive?

FARMING ROAD MAP AND PROFITABILITY REVIEW · 2026-06-24 · READ IN HANSARD

In another leap from reality, the Government’s negotiations with the EU get barely a mention in this document, despite the enormous consequences they will have for farming businesses. CropLife UK has estimated that this EU reset could drain £810 million from UK farms and sacrifice almost 9,000 jobs from our rural constituencies.

FARMING ROAD MAP AND PROFITABILITY REVIEW · 2026-06-24 · READ IN HANSARD

We Conservatives view DEFRA as a vital economic Department, so we agree with its efforts to recalculate farming and food producers’ contributions to the economy. By the way, I note that Reform calls itself the farmer’s friend, yet there is not a single Reform MP in the Chamber.

FARMING ROAD MAP AND PROFITABILITY REVIEW · 2026-06-24 · READ IN HANSARD

As Labour MPs and Ministers in the Department for Environment, Food and Rural Affairs voted repeatedly for the family farm and family business taxes, DEFRA Ministers shut down farming payments without notice, including the SFI. Sadly, the record of this Government is rising food prices and a record number of farms closing.

FARMING ROAD MAP AND PROFITABILITY REVIEW · 2026-06-24 · READ IN HANSARD

The complete record

Every one of 6,012 lines we hold for Victoria Atkins, in date order, each linked to its source. Free to read, in full, without an account. Page 25 of 121.

  1. On the point about the deaths that the hon. Lady understandably raises, we have made referrals to the Independent Office for Police Conduct in relation to those 10 events. The first referral was in March 2019. In the eight concluded investigations, no evidence has been found of misconduct by any HMRC officer, but we are very sensitive to the pressures that people are under, which is precisely why we have the extra support teams in place: teams of trained advisers who can, where appropriate, support taxpayers towards voluntary and community organisations that can help. Of course, people can also ask for help such as time to pay.

    LOAN CHARGE: IMPACT ON MENTAL HEALTH · 2023-02-07 · READ IN HANSARD

  2. May I acknowledge my hon. Friend’s work as Economic Secretary and thank him for it? The difficulty is that a large sum of money is still outstanding from these disputes. We have had an independent review of the matter, through which we have been able to reduce the number of people affected, but the issue of outstanding tax remains. I encourage anyone affected by these historic issues to please talk to HMRC so that we can find a resolution for both sides.

    LOAN CHARGE: IMPACT ON MENTAL HEALTH · 2023-02-07 · READ IN HANSARD

  3. I thank my right hon. Friend for her question. The pillar two rules mean that large companies—these are defined as businesses with revenues of €750 million or more—are subject to a top-up tax if the profits that they make are not subject to at least a 15% tax. The reason that the international community is coming together to draw up these rules is precisely to do with the new shape that all our economies are taking, with international businesses spreading out around the world. We are trying to find a way to ensure that those very profitable businesses pay their fair share of tax.

    TOPICAL QUESTIONS · 2023-02-07 · READ IN HANSARD

  4. I am pleased to be able to announce that, through the more than £2 billion of funding the Government have committed to electric vehicle transitioning, 30,000 public charging devices have been made available with the help of industry. Of course we will look to do even more over the coming years.

    TOPICAL QUESTIONS · 2023-02-07 · READ IN HANSARD

  5. I beg to move, That the Committee has considered the draft Social Security (Contributions) (Rates, Limits and Thresholds Amendments and National Insurance Funds Payments) Regulations 2023.

    DRAFT SOCIAL SECURITY (CONTRIBUTIONS) (RATES, LIMITS AND THRESHOLDS AMENDMENTS AND NATIONAL INSURANCE FUNDS PAYMENTS) REGULATIONS 2023 DRAFT TAX CREDITS, CHILD BENEFIT AND GUARDIAN’S ALLOWANCE UP-RATING REGULATIONS 2023 · 2023-02-06 · READ IN HANSARD

  6. In summary, this proposed legislation makes changes to the rates, limits and thresholds for national insurance contributions, makes provision for a Treasury grant, and increases the rates of tax credits, child benefit and guardian’s allowance in line with prices. I very much hope that the Committee will find agreement on these regulations.

    DRAFT SOCIAL SECURITY (CONTRIBUTIONS) (RATES, LIMITS AND THRESHOLDS AMENDMENTS AND NATIONAL INSURANCE FUNDS PAYMENTS) REGULATIONS 2023 DRAFT TAX CREDITS, CHILD BENEFIT AND GUARDIAN’S ALLOWANCE UP-RATING REGULATIONS 2023 · 2023-02-06 · READ IN HANSARD

  7. We note that the report from the Government Actuary’s Department forecasts that such a grant will not be necessary, but we consider it prudent to make such a provision at this stage, in case it is needed. I turn to the second set of regulations. As hon. Members know, the Government are committed to delivering a welfare system that is fair for claimants and taxpayers, while providing a strong safety net for those who need it most. These regulations will ensure that tax credits, child benefit and guardian’s allowance increase in line with the consumer price index, which showed inflation at 10.1% in the year to September 2022.

    DRAFT SOCIAL SECURITY (CONTRIBUTIONS) (RATES, LIMITS AND THRESHOLDS AMENDMENTS AND NATIONAL INSURANCE FUNDS PAYMENTS) REGULATIONS 2023 DRAFT TAX CREDITS, CHILD BENEFIT AND GUARDIAN’S ALLOWANCE UP-RATING REGULATIONS 2023 · 2023-02-06 · READ IN HANSARD

  8. The employment allowance, which the Government raised from £4,000 to £5,000 last April, means that the smallest 40% of businesses with an employer NICs liability pay no NICs. The thresholds at which employers of employees eligible for NICs reliefs—for example, those with under 25 apprentices, those employing veterans or those with new employees in freeports—have also been fixed in these regulations. The regulations also make provision for a Treasury grant of up to 5% of forecasted annual benefit expenditure to be paid into the national insurance fund, if needed, during 2023-24. A similar provision will be made in respect of the Northern Ireland national insurance fund. This is purely a precautionary measure.

    DRAFT SOCIAL SECURITY (CONTRIBUTIONS) (RATES, LIMITS AND THRESHOLDS AMENDMENTS AND NATIONAL INSURANCE FUNDS PAYMENTS) REGULATIONS 2023 DRAFT TAX CREDITS, CHILD BENEFIT AND GUARDIAN’S ALLOWANCE UP-RATING REGULATIONS 2023 · 2023-02-06 · READ IN HANSARD

  9. Self-employed people earning below £6,725 may pay class 2 NICs voluntarily to protect their entitlement to certain contributory benefits. Class 3 NICs allow people to voluntarily top up their national insurance record. The rate for this will increase in line with inflation to £17.45 a week in the relevant tax year. I turn now to employer NICs. The secondary threshold is the point at which employers start paying employers NICs on their employees’ salaries. In the autumn statement, the Chancellor announced that this threshold will remain at £9,100 in 2023-24 and will be fixed at this level until 2028. This supports the public finances while still ensuring that the largest businesses pay the most.

    DRAFT SOCIAL SECURITY (CONTRIBUTIONS) (RATES, LIMITS AND THRESHOLDS AMENDMENTS AND NATIONAL INSURANCE FUNDS PAYMENTS) REGULATIONS 2023 DRAFT TAX CREDITS, CHILD BENEFIT AND GUARDIAN’S ALLOWANCE UP-RATING REGULATIONS 2023 · 2023-02-06 · READ IN HANSARD

  10. Class 2 NICs are now paid above the newly introduced lower profits threshold, which is set at £12,570 to align with the NICs lower profits limit for class 4 NICs. This change contributed to the Government meeting their manifesto commitment to ensure that the first £12,500 earned is tax free. The upper earnings limit, which is the point at which the main rate of employee NICs drops to 2%, and the upper profits limit, which is the point at which the main rate of self-employed NICs drops to 2%, are aligned with the higher-rate threshold for income tax, at £50,270 per annum. As well as class 4 NICs, the self-employed pay class 2 NICs above £12,500. The flat cash rate of class 2 NICs will increase to £3.45 in 2023-24, in line with inflation.

    DRAFT SOCIAL SECURITY (CONTRIBUTIONS) (RATES, LIMITS AND THRESHOLDS AMENDMENTS AND NATIONAL INSURANCE FUNDS PAYMENTS) REGULATIONS 2023 DRAFT TAX CREDITS, CHILD BENEFIT AND GUARDIAN’S ALLOWANCE UP-RATING REGULATIONS 2023 · 2023-02-06 · READ IN HANSARD

  11. The primary threshold and lower profits limit—this becomes a bit technical; I hope that Committee members stay with me as I set out the details—are the points at which employees and the self-employed start paying class 1 and class 4 NICs respectively. The change meets the Conservative party manifesto commitment to ensure that the first £12,500 earned by individuals is tax free; it does not affect an individual’s ability to build up entitlement towards contributory benefits, such as the state pension, and I know that Committee members want to ensure that that is the case. At the spring statement last year, the Government announced that self-employed individuals with profits between the small profits threshold and the lower profits limit will continue to build up entitlement to certain contributory benefits without paying any class 2 NICs.

    DRAFT SOCIAL SECURITY (CONTRIBUTIONS) (RATES, LIMITS AND THRESHOLDS AMENDMENTS AND NATIONAL INSURANCE FUNDS PAYMENTS) REGULATIONS 2023 DRAFT TAX CREDITS, CHILD BENEFIT AND GUARDIAN’S ALLOWANCE UP-RATING REGULATIONS 2023 · 2023-02-06 · READ IN HANSARD

  12. That is in addition to our wider uprating by 10.1% of benefits that are administered by the Department for Work and Pensions, including the state pension, and the cost of living support that the Government have provided and will continue to provide into the future. The social security regulations set the national insurance contribution limits and thresholds, as well as the rates of a number of national insurance contribution classes, for the 2023-24 tax year, and make provision for a Treasury grant to be paid into the national insurance fund, if required, for the same tax year. Although the scope of the regulations under discussion is limited to the 2023-24 tax year, the Chancellor has also committed to maintain certain thresholds at their current levels in future years.

    DRAFT SOCIAL SECURITY (CONTRIBUTIONS) (RATES, LIMITS AND THRESHOLDS AMENDMENTS AND NATIONAL INSURANCE FUNDS PAYMENTS) REGULATIONS 2023 DRAFT TAX CREDITS, CHILD BENEFIT AND GUARDIAN’S ALLOWANCE UP-RATING REGULATIONS 2023 · 2023-02-06 · READ IN HANSARD

  13. Despite, or indeed because of, the challenges we face, the Government are supporting working people and the most vulnerable in society, so today we are setting a number of national insurance contribution thresholds for the next financial year in order to continue supporting working people. In fact, in July last year, we increased the primary threshold and lower profits limit from £9,880 to £12,570 to match the income tax personal allowance, which is the largest ever increase to personal tax starting thresholds. I am proud that, through the regulations, we are supporting the most vulnerable in society, including by uprating child benefit, the guardian’s allowance and most rates and thresholds of tax credits by 10.1% from April this year.

    DRAFT SOCIAL SECURITY (CONTRIBUTIONS) (RATES, LIMITS AND THRESHOLDS AMENDMENTS AND NATIONAL INSURANCE FUNDS PAYMENTS) REGULATIONS 2023 DRAFT TAX CREDITS, CHILD BENEFIT AND GUARDIAN’S ALLOWANCE UP-RATING REGULATIONS 2023 · 2023-02-06 · READ IN HANSARD

  14. It is a pleasure, as always, to serve under your chairmanship, Mrs Cummins. I hope the Committee will forgive me for putting these two important sets of regulations together. They will be of considerable benefit to all our constituents who rely on both child benefit and guardian’s allowance, but also, importantly, to constituents who pay national insurance contributions. In his statement in November, my right hon. Friend the Chancellor set out the difficult decisions that the Government have made to support stability, growth and public services. As hon. Members know, he made those decisions against the backdrop of significant economic challenges, including high energy prices—partly as a result of Putin’s illegal war in Ukraine—which have driven inflation across the world; rising interest rates; and higher levels of Government debt.

    DRAFT SOCIAL SECURITY (CONTRIBUTIONS) (RATES, LIMITS AND THRESHOLDS AMENDMENTS AND NATIONAL INSURANCE FUNDS PAYMENTS) REGULATIONS 2023 DRAFT TAX CREDITS, CHILD BENEFIT AND GUARDIAN’S ALLOWANCE UP-RATING REGULATIONS 2023 · 2023-02-06 · READ IN HANSARD

  15. Lady asked about a review of tax credit monitoring. She rightly asked why the family element of child tax credit is not rising. The family element is an additional amount paid on top of an individual child element. It has never been uprated in the same way, and it is more sustainable, we say, to handle it in this way. None the less, I know that we all welcome that element as part of our efforts to support families with their finances—at any time, but particularly with the cost of living crisis.

    DRAFT SOCIAL SECURITY (CONTRIBUTIONS) (RATES, LIMITS AND THRESHOLDS AMENDMENTS AND NATIONAL INSURANCE FUNDS PAYMENTS) REGULATIONS 2023 DRAFT TAX CREDITS, CHILD BENEFIT AND GUARDIAN’S ALLOWANCE UP-RATING REGULATIONS 2023 · 2023-02-06 · READ IN HANSARD

  16. The Government Actuary’s Department forecasts that a Treasury grant will not be needed for the relevant tax year, as I said, and the 17% figure was set due to the uncertainty around the impact of the pandemic on the economy. We know how successful Government interventions were in supporting more than 11 million jobs in our economy and keeping millions of businesses afloat in each of our constituencies, but, of course, that comes at a price, which is one of the factors that we in the Treasury must grapple with as we plan for the future. This year, we do not believe that such a high rate is required, because of some of the steps that we have taken to set the economy back on the right track, so 5% has been set on a contingent basis. As I said, however, we do not expect to have to use it. The hon.

    DRAFT SOCIAL SECURITY (CONTRIBUTIONS) (RATES, LIMITS AND THRESHOLDS AMENDMENTS AND NATIONAL INSURANCE FUNDS PAYMENTS) REGULATIONS 2023 DRAFT TAX CREDITS, CHILD BENEFIT AND GUARDIAN’S ALLOWANCE UP-RATING REGULATIONS 2023 · 2023-02-06 · READ IN HANSARD

  17. I thank the hon. Member for Erith and Thamesmead for her thorough examination of the regulations. It is a pleasure to respond to her; this is not usually her portfolio, but it is very nice to be appearing with her. The hon. Lady asked a number of questions. I hope she will forgive me, but it is taking a little time to get the technical answers to those. In particular, she asked for the exact figure for the class 2 and class 3 increases. I am told that for class 2, it is 30p a week per person. For class 3, it is £1.60 a week per person. I hope that helps her. The hon. Lady also asked why we are paying less into the fund this year. The Committee may recall that the Government Actuary’s Department predicts that we will not have to use the fund; none the less, as part of prudent housekeeping, we will set some money aside.

    DRAFT SOCIAL SECURITY (CONTRIBUTIONS) (RATES, LIMITS AND THRESHOLDS AMENDMENTS AND NATIONAL INSURANCE FUNDS PAYMENTS) REGULATIONS 2023 DRAFT TAX CREDITS, CHILD BENEFIT AND GUARDIAN’S ALLOWANCE UP-RATING REGULATIONS 2023 · 2023-02-06 · READ IN HANSARD

  18. I know that the answer will come to me quickly, because we in the Treasury pride ourselves on reacting and responding quickly to the circumstances. The hon. Member for Blaenau Gwent was also trying to catch my eye, so now may be an appropriate time for him to intervene, then I can try to answer both questions at the same time.

    DRAFT SOCIAL SECURITY (CONTRIBUTIONS) (RATES, LIMITS AND THRESHOLDS AMENDMENTS AND NATIONAL INSURANCE FUNDS PAYMENTS) REGULATIONS 2023 DRAFT TAX CREDITS, CHILD BENEFIT AND GUARDIAN’S ALLOWANCE UP-RATING REGULATIONS 2023 · 2023-02-06 · READ IN HANSARD

  19. I know that the hon. Gentleman welcomes the uprating by 10.1% of that particular allowance. It is a vital allowance for those who play such an important role in our society. On the impact of high energy prices, we are not just relying on the uprating of this particular type of tax credit; we are bringing in a whole range of measures, primarily through the Department for Work and Pensions. For example, we are giving a £900 one-off payment to people who are on means-tested benefits, and additional money for the elderly and for those on disability benefits. This uprating is an annual event and, precisely because the CPI was as high as it was in September, we are uprating —rightly, in my view—all these sensitive benefits and allowances to help those who are the most vulnerable in our society.

    DRAFT SOCIAL SECURITY (CONTRIBUTIONS) (RATES, LIMITS AND THRESHOLDS AMENDMENTS AND NATIONAL INSURANCE FUNDS PAYMENTS) REGULATIONS 2023 DRAFT TAX CREDITS, CHILD BENEFIT AND GUARDIAN’S ALLOWANCE UP-RATING REGULATIONS 2023 · 2023-02-06 · READ IN HANSARD

  20. DRAFT TAX CREDITS, CHILD BENEFIT AND GUARDIAN’S ALLOWANCE UP-RATING REGULATIONS 2023 Resolved, That the Committee has considered the draft Tax Credits, Child Benefit and Guardian’s Allowance Up-rating Regulations 2023. —(Victoria Atkins.)

    DRAFT SOCIAL SECURITY (CONTRIBUTIONS) (RATES, LIMITS AND THRESHOLDS AMENDMENTS AND NATIONAL INSURANCE FUNDS PAYMENTS) REGULATIONS 2023 DRAFT TAX CREDITS, CHILD BENEFIT AND GUARDIAN’S ALLOWANCE UP-RATING REGULATIONS 2023 · 2023-02-06 · READ IN HANSARD

  21. As well as helping our constituents with their bills in the immediate term, we hope that the guarantee will have a longer-term impact on getting inflation down. The impact of inflation on our economy is stark, which is why the Prime Minister is rightly focusing on it and, indeed, why it was the first promise in his new year speech. Inflation hurts everyone, but it hurts the poorest in society the most. Before I sit down, I am keen to answer the question from the hon. Member for Erith and Thamesmead. I am told that income disregards are conventionally frozen, but I want to get some more information to her, so I undertake to write to her on that important point. Question put and agreed to.

    DRAFT SOCIAL SECURITY (CONTRIBUTIONS) (RATES, LIMITS AND THRESHOLDS AMENDMENTS AND NATIONAL INSURANCE FUNDS PAYMENTS) REGULATIONS 2023 DRAFT TAX CREDITS, CHILD BENEFIT AND GUARDIAN’S ALLOWANCE UP-RATING REGULATIONS 2023 · 2023-02-06 · READ IN HANSARD

  22. I thank the hon. Gentleman for raising that interesting point. We have settled on CPI as the preferable rate of inflation, because it ensures the fairest outcome for those receiving help from the state and for the taxpayers who enable benefits and other public services to be funded properly. Indeed, we changed to CPI from the retail price index some years ago. The Government keep other measures of inflation under review. We think CPI is the most appropriate index at the moment, but we will keep that under review. I hope that the hon. Gentleman welcomes the recent observations of the Office for Budget Responsibility, which thinks that the energy price guarantee has had a powerful buffering impact on the rate of inflation in recent months—as much as 2% or 2.5%.

    DRAFT SOCIAL SECURITY (CONTRIBUTIONS) (RATES, LIMITS AND THRESHOLDS AMENDMENTS AND NATIONAL INSURANCE FUNDS PAYMENTS) REGULATIONS 2023 DRAFT TAX CREDITS, CHILD BENEFIT AND GUARDIAN’S ALLOWANCE UP-RATING REGULATIONS 2023 · 2023-02-06 · READ IN HANSARD

  23. Many of the individuals who earn above the £50,270 mark will earn between £50,000 and £60,000, so they will not be required to pay back the entire value of their child benefit, because it is tapered in that £10,000 spectrum. We have, I am told, never aligned the threshold for the charge with the UK higher rate threshold or, indeed, other thresholds for income tax. Of course, I note that in Scotland the Scottish Government have set the higher rate threshold for Scottish income tax at a lower rate of over £43,000. We are very concerned that raising the threshold above the £50,000 figure would come at a significant cost to the Government at a time when support is needed for vital public services.

    HIGH INCOME CHILD BENEFIT CHARGE · 2023-02-02 · READ IN HANSARD

  24. The charge affects a small proportion of child benefit claimants—namely, those who have relatively high incomes. The hon. Member for Strangford (Jim Shannon) questioned the threshold. I hope that I can offer him some reassurance, on a national scale. In 2019-20—the last year for which I have been provided with figures—about 373,000 individuals in the UK declared a HICBC liability, HICBC being the acronym that the Treasury uses; I prefer what the hon. Member for Linlithgow and East Falkirk said—“the charge”. However, the vast majority of those 373,000 individuals have incomes above the UK higher rate income tax threshold of £50,270. That is in the context, as I have said, of 7.7 million families being assisted with the cost of raising children.

    HIGH INCOME CHILD BENEFIT CHARGE · 2023-02-02 · READ IN HANSARD

  25. We have also taken decisive action to support households with those pressures over this year and the next, including by helping millions of the most vulnerable households through the additional cost of living payments over this year and next; the energy price guarantee, which will save households £900 this year and £500 next year; and the support for all UK households provided through the £400 energy bill support scheme. But we need to continue with our plan for stability and fiscal prudence and to be responsible with the nation’s finances. That is why we want to ensure that welfare spending remains sustainable and focused on those who most need the help. We continue to support the vast majority of families with child benefit payments, but the high income child benefit charge allows us to maintain that sustainability.

    HIGH INCOME CHILD BENEFIT CHARGE · 2023-02-02 · READ IN HANSARD

  26. The difficult challenges that we face in the wider economy, not just domestically but internationally, are having an impact on families up and down the country. Many of the worries circle around rising prices, or inflation. That is precisely why, in his new year speech, the Prime Minister pledged to halve inflation by the end of the year. We understand that if prices are rising, our money does not go as far. We want to ensure that we can halt the pace at which prices are rising, so that our hard-earned money goes further.

    HIGH INCOME CHILD BENEFIT CHARGE · 2023-02-02 · READ IN HANSARD

  27. That is why, when we had to make difficult decisions in the autumn statement, we protected child benefit in real terms, which means that from April this year, subject to us approving it in due course in the Finance Bill, child benefit will rise in line with the consumer prices index, or 10.1%. Of course, there are other ways in which the Government and local authorities offer support to parents with childcare responsibilities and costs, including for example early education through the Department for Education’s free hours entitlements and financial support for childcare through tax-free childcare and universal credit childcare offers. We all want to ensure the very best start in life for our beloved children.

    HIGH INCOME CHILD BENEFIT CHARGE · 2023-02-02 · READ IN HANSARD

  28. Child benefit is an incredibly important form of state assistance. Historically, many decades ago, in previous generations when women did not tend to work or were not permitted to work in the way that, thankfully, we are nowadays, child benefit was often the way in which they could feed and clothe their children. Although our working economy has, thankfully, changed in so very many ways since then, we as a Government want to maintain that link between the state and helping families to raise children who need the help. We genuinely understand that, for the lowest paid or the poorest of families, child benefit payments are vital to help families pay for clothing, food and other essentials. Some 7.7 million families are helped with the cost of raising their sons and daughters, and the Government are keen to continue that tradition.

    HIGH INCOME CHILD BENEFIT CHARGE · 2023-02-02 · READ IN HANSARD

  29. It is a pleasure to serve under your chairmanship, Mr Stringer. I congratulate the hon. Member for Linlithgow and East Falkirk (Martyn Day)—I hope that I pronounced that correctly—on securing this important debate. I say from the very outset that I understand the experiences of his constituents that he described, and I hope that in previous correspondence we have acknowledged the tension—I suppose that is the word—of these points in the tax system, not just in the context of child benefit but across the tax system. There are points of tension where the next rating, if you like, of taxation falls, and those have repercussions. I promise him that I spend a great deal of my time considering that, not just in this context but, as he will appreciate, across many other forms of taxation.

    HIGH INCOME CHILD BENEFIT CHARGE · 2023-02-02 · READ IN HANSARD

  30. Member for Dunfermline and West Fife and mine—was focused on those constituents on whom we have rightly focused, namely the poorest paid, rather than those earning astronomical salaries.

    HIGH INCOME CHILD BENEFIT CHARGE · 2023-02-02 · READ IN HANSARD

  31. I was just about to come to the hon. Gentleman’s question about universality, if that is the point on which he is seeking to intervene. He raised the issue of universality, and my response to that would be that he and others are rightly focusing on the challenge of people just over the £50,000 mark or, indeed, making comparisons with couples who individually earn under the £50,000 mark but together obviously earn nearly £100,000. I do not quite know how I would justify extending child benefit to couples who earn significantly in excess of £50,000 each. Perhaps a mile or two down the river, in the City, there may be couples in banking, the finance sector and so on who are earning not just hundreds of thousands of pounds but even more. I for one would much rather that the tax paid by our constituents —those of the hon.

    HIGH INCOME CHILD BENEFIT CHARGE · 2023-02-02 · READ IN HANSARD

  32. The system of independent taxation being what it is, every individual, including each partner in a couple, is treated equally and independently within the income tax system. That means that the child benefit charge, sitting as it does within the income tax system, must adhere to those principles; that is the idea behind it. I acknowledge the tensions that the hon. Members for Dunfermline and West Fife and for Linlithgow and East Falkirk have raised regarding those families where people fall just below the threshold, but Governments of all colours must do that kind of balancing when setting thresholds and rates of taxation, and so on. That is why the charge is set as it is.

    HIGH INCOME CHILD BENEFIT CHARGE · 2023-02-02 · READ IN HANSARD

  33. I very much understand this point. I do not know whether the hon. Gentleman was involved at all in the scrutiny of the Bill that became the Domestic Abuse Act 2021, which I had the privilege of taking through the House a year or two ago. Interestingly, one of the challenges that his SNP colleagues put to me, in the context of universal credit, was that universal credit is paid per household. They made the point that, particularly for victims of domestic abuse, they would prefer it to be paid to the individual. The reason why I raise that is that we have a long-standing tradition—since, I am told, the 1990s—of individual taxation. I, as a feminist, am entirely comfortable with being—indeed, demand the right to be—taxed on my income, rather than that of my husband.

    HIGH INCOME CHILD BENEFIT CHARGE · 2023-02-02 · READ IN HANSARD

  34. I assure colleagues that we will always keep this and any other tax policy under review. We will listen to colleagues on how the system can be improved for the benefit of families, carers and children. I hope that I have reassured hon. Members or at least explained the Government’s position on the policy, with the need to keep the public finances and, importantly, child benefit on a sustainable footing.

    HIGH INCOME CHILD BENEFIT CHARGE · 2023-02-02 · READ IN HANSARD

  35. All the taxpayers who have been assessed were still liable for the charge and nothing in the court’s judgment called that into question. Indeed, I am told that this has been operationalised in recent times. Anyone who has concerns about bills or letters that they receive should be encouraged to contact HMRC, because, when tax is owed, time can be given in the right circumstances to pay it, for example, so that we ensure that we are supporting people with their tax affairs. I hope that I have addressed many of the interesting points raised by hon. Members across the House on this important topic. I very much understand and welcome the scrutiny that the House brings to this important benefit and the operation of the policy to ensure that the benefit is paid to those families who need it the most.

    HIGH INCOME CHILD BENEFIT CHARGE · 2023-02-02 · READ IN HANSARD

  36. In terms of the child’s national insurance number, if a person claims but opts out of receiving payments, HMRC will give that national insurance number to the child automatically, but if the family do not claim at all, there is an online service provided by DWP to enable the child to obtain a national insurance number. I ask Members to please let their constituents know of that service if they are not aware of it. The hon. Gentleman asked about the Wilkes case and made the point that the changes arising from the case were retrospective. Obviously, we have to have heed to the ruling in that case, so we have legislated to put beyond doubt that the longstanding rules that HMRC uses to recover tax that it discovers has not been assessed can continue to operate in relation to the charge.

    HIGH INCOME CHILD BENEFIT CHARGE · 2023-02-02 · READ IN HANSARD

  37. On the point of families deciding not to claim child benefit, the question was asked, “What does that mean in terms of national insurance credits and numbers?” I hope I can assure the hon. Member by telling him that a national insurance record can be filled in a number of ways, not simply through child benefits. Not everyone will require the national insurance credits that come with child benefits, and individuals may build up sufficient qualifying years over an expected working life of 50 years even if there are some gaps in their NI record, which of course may happen because of caring responsibilities. Most individuals under the age of 50 will get a full state pension with 35 qualifying years, and we encourage people to claim child benefit regardless of their income to help them build the qualifying years of national insurance.

    HIGH INCOME CHILD BENEFIT CHARGE · 2023-02-02 · READ IN HANSARD

  38. That is the only way we have of establishing a person’s adjusted net income, but we have tried to help people with the administration of this. Indeed, there is a calculator on gov.uk to help people work out how much tax they may have to pay, which I hope will be of assistance for colleagues corresponding with constituents. HMRC takes steps to notify those who may need to complete a tax return, including writing to 70,000 people each year to notify them and outline what they need to do to pay. Of course, families can claim child benefit but opt out of getting payments. That means they do not have to pay the charge but can keep the non-monetary benefits of claiming child benefit, such as the national insurance credits for state pension reasons, which the hon. Member for Linlithgow and East Falkirk referred to.

    HIGH INCOME CHILD BENEFIT CHARGE · 2023-02-02 · READ IN HANSARD

  39. I am keen to address the matter of complexity because, again, I have heard and understood the experiences that hon. Members have highlighted of the complexities for people who perhaps are PAYE employees but have to submit a self-assessment tax return. The reason for that—this is where the tax technicalities of my role come to the fore—is the charge is based on the amount of an individual’s adjusted net income, which is an individual’s total taxable income before any personal allowances and less certain tax reliefs. Using that measure avoids using estimates of income that could result in too little or too much tax being paid. For example, it allows people who have saved more into their pension or have donated to charity to have that reflected in their income self-assessment.

    HIGH INCOME CHILD BENEFIT CHARGE · 2023-02-02 · READ IN HANSARD

  40. Basing the high income child benefit charge on household income would require all families in receipt of child benefit payments to report their household income data to HMRC in order to ensure compliance, which I think would be a significant administrative burden on not just HMRC but, more importantly, the families we are seeking to represent. Of course, as the hon. Member for Strangford has highlighted, some of those claimants will be on very low incomes, nowhere near the threshold of £50,000. Again, I wonder about the unintended consequences for such people. The hon. Member for Linlithgow and East Falkirk asked me a question about men. I am sorry that I did not have a chance to note it down, but I hope we will be able to discuss it after the debate and that I will be able to provide him with an answer, even if not immediately.

    HIGH INCOME CHILD BENEFIT CHARGE · 2023-02-02 · READ IN HANSARD

  41. While there may be circumstances in which that happens, I do think we need to tread very carefully: for example, means testing would mean that individual taxpayers would have to explain their family setup to HMRC. Of course, family situations can change—relationships break down and relationships are formed—and at the moment, that sort of information is not collected by HMRC through self-assessment. I think we would all want to be sure we were comfortable with that information, and the burden of telling HMRC about it, being part of an individual’s self-assessment. HMRC holds records on individual incomes, allowing it to identify who is liable for taxes, and communicates with those people as appropriate to encourage compliance.

    HIGH INCOME CHILD BENEFIT CHARGE · 2023-02-02 · READ IN HANSARD

  42. It is precisely because we are taxed as individuals. When HMRC considers the self-assessment forms that, I hope, colleagues across the House sent in in good time before the 31 January deadline, those forms will be considered on the basis of individuals’ own circumstances: we do not look at the circumstances of those individuals’ partners and tax them on their partner’s income. That is the underlying principle. I accept that that principle rubs up against this particular policy, but I would be concerned about doing otherwise, and not just from the perspective of it chipping away at the principle of individual taxation. When we debate means testing, we ought to consider that we would be beginning to ask HMRC to collate data about people’s relationships and family setups in the context of collecting taxation.

    HIGH INCOME CHILD BENEFIT CHARGE · 2023-02-02 · READ IN HANSARD

  43. On a point of order, Mr Deputy Speaker. If I am going to be quoted, I expect to be quoted correctly. The hon. Gentleman seems to use words I am not sure he quite understands—I do not know. In my speech, I am going to help him to understand some of the words he has used. But I have only ever sought to set out the facts, which we have to take into account on the issue under discussion, which is that they do pay £7.9 billion in tax. That is the context in which I have cited that figure, not in the way that he has alleged.

    NON-DOMICILE TAX STATUS · 2023-01-31 · READ IN HANSARD

  44. Those conventions apply to Governments of all political colours. If we were to make changes to any aspect of the tax system, the right and proper place to publish related costings and assessments is at the relevant fiscal event. Having dealt with the motion’s flawed framework, I will say that we understand the legitimate concerns of people across the country. The country has a strong instinct for fairness, and we want all people to pay their fair share of tax. As the Minister responsible for the tax system, I feel that keenly, because I know that many people across the country are under pressure at the same time as we need to fund our public services properly.

    NON-DOMICILE TAX STATUS · 2023-01-31 · READ IN HANSARD

  45. It is therefore ironic that Labour has chosen to table this type of motion today, because it was a parliamentary device that the Leader of the Opposition fell on when he was the shadow Brexit Minister and self-identified as a Corbynite. Labour used this sort of motion to try to block Brexit, but it did not work then and it will not work now to stop the Government’s responsible handling of the economy. The flaws in the motion are fundamental, because long-standing and crucial conventions exist that Ministers should be able to receive free and frank advice from officials. In developing policy, Ministers must have a safe space to be advised by officials. That process should not play out in public, especially given that Treasury Ministers are often dealing with issues that are highly market sensitive.

    NON-DOMICILE TAX STATUS · 2023-01-31 · READ IN HANSARD

  46. Having helped households throughout the pandemic, we have set up new schemes to help people and businesses with rising energy bills, and we have taken targeted action on the cost of living. We have raised pensions, benefits and the national living wage to help those who might otherwise have been left behind. Those who ask where the burden falls in paying for that support should look at the measures in the autumn statement, which, as a whole, show that we have asked wealthier people to pay more. We have asked those with the broadest shoulders to carry the heaviest burden. Today is not only the deadline for self-assessments, but, interestingly, the third anniversary of the Conservatives keeping our promise to the British people by honouring the result of the referendum and leaving the European Union.

    NON-DOMICILE TAX STATUS · 2023-01-31 · READ IN HANSARD

  47. Thirdly, we will ensure that our national debt is falling, so that we can secure the future of public services. Fourthly, we will cut NHS waiting lists, so that people can get the care they need more quickly. Fifthly, we will pass new laws to stop small boats. To reflect the people’s priorities, three of our priorities are economic. They are a plan for a bright future where our economy is growing faster and where people across the country have opportunities for good jobs and for their pay to go further. The autumn statement laid out our plan to achieve that future and, despite the difficult fiscal decisions we had to make, re-emphasised our support for the most vulnerable.

    NON-DOMICILE TAX STATUS · 2023-01-31 · READ IN HANSARD

  48. If the House will allow me, I would like to take a moment to mark the 70th anniversary of the east coast tidal surge, which saw 307 lives lost in England, including 43 people in Lincolnshire. Sutton-on-Sea in my constituency was one of the worst affected areas, and this morning constituents and Lincolnshire residents came together on the coastline to mark this terrible day in our nation’s history. Sadly, I could not be with them, but I want to place on record that my thoughts are with them on this difficult anniversary. The Government have five priorities, as set out by the Prime Minister. First, we will halve inflation to give respite to business and reprieve to families living under the pressure of rising prices. Secondly, we will grow the economy to create better paid jobs and opportunities across the country.

    NON-DOMICILE TAX STATUS · 2023-01-31 · READ IN HANSARD

  49. I am genuinely grateful to the hon. Gentleman, because that helps me to set out the progress that has been made in that area in the last decade. Non-domicile tax contributions rightly play an important part in funding our public services. Non-doms pay UK tax on their UK income and gains, and they pay UK tax on foreign income and gains when those amounts are brought into the UK. I know the hon. Member for Ealing North (James Murray) dismisses £7.9 billion out of hand, as though it is somehow not relevant, but I set out these facts precisely because that is a very large sum of money and it helps to fund public services. It is right, in having a reasoned debate about these measures, that we adhere to the facts.

    NON-DOMICILE TAX STATUS · 2023-01-31 · READ IN HANSARD

  50. I am very grateful to the hon. Gentleman for that thoughtful contribution. I hope he will understand that I must neither confirm nor deny that given where we are in the Budget cycle, but he makes an interesting point about the level of the remittance and his views on its impact.

    NON-DOMICILE TAX STATUS · 2023-01-31 · READ IN HANSARD