It is a pleasure to serve under your chairmanship, Mrs Main, on the final day of the Committee. Whereas clauses 29 and 30 provide for tax credit or universal credit awards to be terminated automatically if parents claim top-up payments, clauses 31 and 32 make similar provisions, but the other way round. They deal with scenarios where parents might attempt to move from top-up payments to tax credits or universal credit. If a person or their partner is receiving top-up payments following a valid declaration of eligibility, but then goes on to make a successful claim for tax credits or universal credit, clauses 31 and 32 state that they will be automatically disqualified from claiming top-up payments through disqualification notices.

The clauses allow for some exceptions. For example, if a parent experiences a change in circumstances, they will receive a warning or subsequently a disqualification notice. They will therefore continue to claim top-up payments for the rest of the entitlement period. Regulation 18 of the draft statutory instrument on eligibility conditions, which we have published, lists those circumstances, including all the changes that might affect a person’s ongoing eligibility. Given those allowances and exceptions, can the Minister confirm that if a parent’s or their partner’s circumstances change within an entitlement period, they will be able to receive top-up payments until the end of that period, while potentially claiming tax credits or universal credit at the same time? Is that correct? If so, can she confirm that there will be short periods when parents could find themselves entitled to more than one scheme if their circumstances change within the entitlement period?

Presumably, the exceptions will allow parents to move between schemes and not be punished for the complexities in them, which is an issue that we have raised on a number of occasions and that is of huge concern to a number of Committee members. Any measures to mitigate the difficulties that parents might face when moving between the schemes would be welcome. It would be helpful if the Minister confirmed that that is what is being provided for here.

Clause 33 sets out the rules for when and how disqualification notices can be issued. Her Majesty’s Revenue and Customs can issue them only after it has issued a warning notice, and they can remain valid for a maximum of three years. Subsection (7) provides that a disqualification notice can be revoked by HMRC. Can the Minister set out a scenario in which HMRC might revoke a disqualification notice?

Are those notices deemed to be punishment? I know we do not like to talk in those terms, but if parents attempt to move between schemes when they are not allowed to, as set out in clauses 31 and 32, I would be surprised if HMRC did not want to retain some ability to give them a penalty. Could disqualification notices be revoked if a person’s or their partner’s circumstances subsequently changed again and they then became eligible for top-up payments? I appreciate that I am touching on a number of complexities, but it is key that HMRC has thought through all the potential scenarios. It would be helpful to have some clarity on how HMRC will deal those circumstances.