Schedule 3 - Tax credits: consequential amendments
Tax Credits Bill
4:45 pm
Ms Dawn Primarolo (Paymaster General, HM Treasury; Bristol South, Labour)
I shall do my best to help the hon. Gentleman, and explain why I think that his amendment and new clause are unnecessary. I do, however, agree with the points that he is making, and we are trying to proceed on the issues contained in his proposals.
The role of the Social Security Advisory Committee is set out in part XIII of the Social Security Administration Act 1992. That role is to advise the Secretary of State in connection with carrying out his functions. The amendment and new clause seek to widen the SSAC's remit, giving it an advisory role in relation to the Treasury's functions under the Bill. I do not think that it needs to be concerned with everything there.
I understand the hon. Gentleman's concern that we should ensure that the experience and knowledge of the committee, in the area of social policy, can inform the development of the tax credits system and that proposals for draft legislation made under the Bill are subject to the appropriate scrutiny and consultation. I wholeheartedly agree with that sentiment.
When the working families tax credit and disabled person's tax credit were introduced and, similarly, when the responsibility for national insurance contributions was transferred to the Inland Revenue, I was anxious to ensure that that consultation was happening. I asked my officials to make sure that the committee was shown all relevant regulations in draft so that we benefited from its members' expertise. That practice has continued, and I take the opportunity to place on record my appreciation of the contribution that those people make.
The SSAC was also consulted about the proposed introduction of the two new tax credits. Officials from the Inland Revenue, the Treasury and the Department for Work and Pensions met the committee to discuss the Government's proposals. My officials are already in touch with the committee to ensure that arrangements are made for the dialogue to continue and progress.
I hope that the hon. Gentleman and I are—I do not think that I can say this—as one on this issue. I have embarrassed him now. However, I do not think that the appropriate way forward is to amend the Bill. I agree that the provision must be made. In the area of tax contributions and tax credits, the Government's function, and what is important to the committee, is the new tax credit system, including the making of new regulations for it.
The board of the Inland Revenue is a statutory body, with duties set out under the Inland Revenue Regulation Act 1890. There are clear lines of accountability here, and it would be messy and difficult to put things in the way that the hon. Gentleman has suggested. The board is answerable to Treasury Ministers on the matter. I sincerely hope that the hon. Gentleman will accept that I agree with his points about the SSAC. We intend to ensure that it will continue to be involved, consulted and referred to, not through amendments to the Bill but by direct agreement between the relevant Departments. I hope that, on that basis, he will withdraw the amendment.