Clause 34 - Recovery of top-up payments where tax credits award made on a review

Part of Childcare Payments Bill – in a Public Bill Committee at 9:25 am on 28 October 2014.

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Photo of Priti Patel Priti Patel The Exchequer Secretary 9:25, 28 October 2014

Clauses 34 to 37 set out the rules that will allow HMRC to recover top-up payments when a parent receives a backdated tax credit or universal credit award payment following a successful review or appeal. The Government do not intend to provide duplicate support for child care under the new scheme, so tax credits or universal credit will require a mechanism to deal with such scenarios.

The clauses will apply when a person or their partner has asked for a review of, or appeals against, a decision to refuse or end a tax credit or universal credit award, and then claims support under the new scheme while the review or appeal is conducted. If the review is successful, the parent will receive a backdated tax credit or universal credit payment, and HMRC will recover the top-up payments received for that same period.

Clause 34 allows HMRC to recover the Government top-up payments when there is a backdated tax credit payment following a successful review that covers a period in which a parent claims support under the new scheme. Clause 35 provides for similar rules that allow HMRC to recover the top-up payment when there has been a backdated tax credit payment following a successful appeal.

Clause 36 permits HMRC to recover top-up payments in cases in which a parent has received a backdated universal credit payment for the same period, following a review. It mirrors the provision for tax credits in clause 34 that I have just mentioned. Clause 37 allows HMRC to recover top-up payments when there has been a backdated universal credit payment for the same period following a successful appeal.