Schedule 3 - Tax credits: consequential amendments
Tax Credits Bill
4:30 pm
Professor Steve Webb (Northavon, Liberal Democrat)
Returning to sobriety, this relatively straightforward amendment and new clause would insert in the Bill provision for annual uprating, presumably in line with prices at least, of the various thresholds that will apply to tax credits legislation.
Clearly the Paymaster General could legitimately point out that since the Government came to office they have done far more than price index many of the elements of sport for children. That is laudable and to be applauded. However, we are legislating not merely for benign Ministers such as the hon. Lady but for subsequent elected despots, whom we might face across the Chamber or indeed form a Government with. [Laughter.] The issue is whether the Government want to place on record their intention to index all aspects of the tax credit regime.
There is a serious point to be made here. One assumes that in the normal run tax credits will probably be uprated in general, but there are detailed nooks and crannies in these systems that often do not get uprated. In the social security system, one thinks of capital limits, which sometimes remain the same year on year. Although an individual decision not to uprate does not matter a great deal, the cumulative effect can sometimes be quite serious.
Although we would be grateful for an assurance from the Paymaster General that the Government's intention is benign, it would be nice to tie their hands to some extent by including such a provision in the Bill. It would require them to uprate not only the headline parts of the system—we assume that they would fear the consequences of not doing that—but the obscure parts that no one really notices, but which could impact on individual claimants. The effect of failing to uprate various parts of the benefits system is often similar.
As I understand it, the Bill does not make such provision, and we therefore hope that the Paymaster General will accept the new clause.