I am sorry if I caught the hon. Member for Nottingham East by surprise, but I am sure that the Committee was anxious to hear from him in full early on. It is a pleasure to respond to the points and questions that he has raised.

Clause 1 introduces schedule 1, which extends the existing relief for foster carers by replacing it with broader qualifying care relief. The changes simplify the  computation profits for tax purposes by allowing carers to apply a notional amount of relief rather than having to keep track of all the expenses of providing care. That is done by calculating the relief by reference to the number of people who are placed with the carer and it is a simple and clear way of calculating profits for tax purposes.

The changes will greatly assist those who operate on a small scale. Using qualifying care relief will encompass many carers who have benefited from the approach on a concessionary basis. The hon. Gentleman asked how many people will benefit as a consequence of the changes, or how many will fall within the category. The answer is about 8,000 carers. We are ensuring that their tax affairs are on a firm statutory basis.

The measure may be familiar to some Opposition Members. As with many of the other provisions in this “housekeeping” Bill, it was announced by the previous Government at last year’s pre-Budget report. Draft legislation was then published for comment. I believe that the change is worth while and welcome, so I have proceeded with it.

As part of this Government’s work to improve tax policy making, however, the clause—like all the others—was published in July to allow for additional consultation, which has been helpful. The measure has been received favourably by carers and their representatives, including The Fostering Network, and National Association of Adult Placement Schemes.

One change has been made to the schedule, to clarify its meaning, that also relates directly to the subject of consultation. In its draft form, the relief might have been construed as applying to other sources of income, so two commas were added to ensure that it can be applied only to income received from caring. I am sure that the hon. Member for Nottingham East will have spotted that, so I have saved his having to highlight it in the debate on the schedule. The change demonstrates some of the benefits of consultation.

The clause has been welcomed by both sides and will offer greater certainty to many carers. At the Budget, we announced that the rule change will take effect this tax year. The relieving clause has retrospective effect to 6 April 2010, which I am sure will not be too much of a problem.

I am sure that the hon. Gentleman will understand that the trend in the number of carers is not a matter for Her Majesty’s Revenue and Customs. Local authorities hold data on the number of carers; HMRC, which administers the relief, deals only with the tax effects and the payments. In answer to another of the hon. Gentleman’s questions, I should say that the measure covers the whole of the UK. I hope that that clarification is useful.