Schedule 3 - Tax credits: consequential amendments
Tax Credits Bill
4:45 pm
Professor Steve Webb (Northavon, Liberal Democrat)
I always find the hon. Lady tempting in the extreme.
The Paymaster General has given me quite a heartening response, which goes some of the way towards addressing my concerns about parts of the system not being indexed. I am concerned, however, that were no Government amendment along these lines introduced, there would in effect be a licence to cut parts. She is essentially saying that things might change and that the Government might decide that they have different priorities and therefore want to cut parts. If there were no intention ever to cut anything, having their hands tied over uprating would not be a problem, because it was always going to happen. If the Paymaster General introduced no amendment at a subsequent stage, that would suggest that the Government had in mind keeping open the option to cut parts of the system. Obviously, they do not have that intention at present as the system is new, but claimants might be slightly concerned were no such amendment introduced.
I mention some precedents. One is the Social Security Administration Act mentioned in the amendment. It is far from unprecedented to include in legislation that parts of the income maintenance system shall be indexed annually. Governments do not say that they do not guarantee to index pensions every year because that would tie their hands. They have statutory duties to index things. It seems slightly odd for them to argue that they do not want a statutory indexing provision because it would tie their hands. The Government do such things in very similar circumstances.
Another precedent, perhaps closer to the tax system, is what is known as the Rooker-Wise-Lawson amendment, which requires statutory indexation of personal tax allowances unless the relevant Bill overrides it. The assumption is that it is a positive, high-profile action not to index, rather than something that just goes through on the nod because there is no requirement to index. I had thought that I would seek to press the amendment until, at the end of her remarks, the Paymaster General said that she has some sympathy with where the amendment is coming from. Heartened by that, and looking forward to what she comes up with, I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.