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1

 

House of Commons

 
 

Monday 12 December 2016

 

Consideration of Bill (Report Stage)

 

New Amendments handed in are marked thus Parliamentary Star

 

Parliamentary Star - whiteAmendments which will comply with the required notice period at their next appearance

 

Savings (Government Contributions) Bill


 

Note

 

This document includes all amendments tabled to date and includes any

 

withdrawn amendments at the end. The amendments have been arranged in the

 

order in which they relate to the Bill.

 


 

NEW CLAUSEs

 

Gareth Thomas

 

Stephen Doughty

 

NC1

 

To move the following Clause—

 

         

“Save as You Earn: employee request

 

(1)    

The Secretary of State may, by regulations, make provision for a Save as You

 

Earn scheme.

 

(2)    

The scheme shall require employers to make deductions from wages if—

 

(a)    

the employee has requested to enrol on the Save as You Earn scheme;

 

(b)    

the deducted wages are paid into a Help-to-Save account; and

 

(c)    

the amount deducted does not exceed the maximum monthly amount as

 

defined in paragraph 10(2) of Schedule 2 to this Act.”

 



 
 

Consideration of Bill (Report Stage): 12 December 2016      

2

 

Savings (Government Contributions) Bill, continued

 
 

Peter Dowd

 

John McDonnell

 

Rebecca Long-Bailey

 

Jonathan Reynolds

 

NC2

 

To move the following Clause—

 

         

“Impact review: automatic enrolment and pensions savings

 

(1)    

The Treasury must review the impact of Lifetime ISAs on workplace pensions

 

automatic enrolment and pensions savings within one year of this Act coming

 

into force and every year thereafter.

 

(2)    

The conclusions of the review must be made publicly available and laid before

 

Parliament.”

 

Member’s explanatory statement

 

This new clause would place a duty on HMRC to review annually the impact of Lifetime ISAs on

 

automatic enrolment.

 


 

Peter Dowd

 

John McDonnell

 

Rebecca Long-Bailey

 

Jonathan Reynolds

 

NC3

 

To move the following Clause—

 

         

“Lifetime ISAs: Advice for applicants

 

(1)    

The Treasury must, by regulations, make provision for all applicants for a

 

Lifetime ISA to have independent financial advice made available to them

 

regarding the decision whether or not to save in a Lifetime ISA.

 

(2)    

Any applicant that opts in to the services offered under subsection (1) shall be

 

given a signed declaration by that service provider outlining the financial advice

 

that the applicant has received.

 

(3)    

Any provider of a Lifetime ISA must confirm whether an applicant—

 

(a)    

intends to use the Lifetime ISA for the purposes of paragraph 7(1)(b) of

 

Schedule 1,

 

(b)    

has a signed declaration of financial advice under subsection (2), or

 

(c)    

is enrolled on a workplace pension scheme or is self-employed.

 

(4)    

Where the provider determines that the applicant is—

 

(a)    

self-employed and does not participate in a pension scheme,

 

(b)    

not enrolled on a workplace pension scheme,

 

(c)    

does not intend to use the Lifetime ISA for the purposes of paragraph

 

7(1)(b) of Schedule 1, or


 
 

Consideration of Bill (Report Stage): 12 December 2016      

3

 

Savings (Government Contributions) Bill, continued

 
 

(d)    

does not have a signed declaration of financial advice under subsection

 

(2),

 

    

the provider must inform the applicant about the independent financial advice

 

available to them under subsection (1).”

 

Member’s explanatory statement

 

This new clause would place a duty on the Treasury to make regulations that ensure all applicants

 

for a Lifetime ISA have independent financial advice made available to them.

 


 

Peter Dowd

 

John McDonnell

 

Rebecca Long-Bailey

 

Jonathan Reynolds

 

NC4

 

To move the following Clause—

 

         

“First-time residential purchase: research and impact assessment

 

(1)    

Within one year of this Act coming into force the Treasury must conduct a review

 

into the potential impact of provisions within paragraph 7(1)(b) of Schedule 1

 

on—

 

(a)    

house prices in the UK, and

 

(b)    

the operation of the housing market.

 

(2)    

The findings of the review must be made publicly available and laid before

 

Parliament.”

 

Member’s explanatory statement

 

This new clause would require a review of the Bill’s effect on the UK housing market/house prices.

 


 

Peter Dowd

 

John McDonnell

 

Rebecca Long-Bailey

 

Jonathan Reynolds

 

NC5

 

To move the following Clause—

 

         

“Distributional analysis of the impact of the Lifetime ISA and Help to Save

 

(1)    

Within six months of this Act coming into force the Treasury must conduct an

 

analysis of the distribution of benefits of Lifetime ISAs and Help-to-Save

 

accounts including between—

 

(a)    

households at different levels of income,

 

(b)    

people of different genders,

 

(c)    

people with disabilities, and

 

(d)    

black and minority ethnic groups.

 

(2)    

The findings of the analysis conducted under subsection (1) must be laid before

 

Parliament.”

 



 
 

Consideration of Bill (Report Stage): 12 December 2016      

4

 

Savings (Government Contributions) Bill, continued

 
 

Peter Dowd

 

John McDonnell

 

Rebecca Long-Bailey

 

Jonathan Reynolds

 

NC6

 

To move the following Clause—

 

         

“Lifetime ISA and Help-to-Save: value for money

 

(1)    

Within six months of this Act coming into force the Treasury must assess the

 

value for money provided by the Lifetime ISA and Help-to-Save scheme.

 

(2)    

The assessment must in particular include—

 

(a)    

the cost to the Exchequer of the measures,

 

(b)    

the number of individuals who have benefited from the measures, and

 

(c)    

the average tax deduction received by an individual as a result of the

 

measures.

 

(3)    

The findings of the assessment must be made publicly available.”

 


 

Ian Blackford

 

Dr Eilidh Whiteford

 

NC7

 

To move the following Clause—

 

         

“Advice for applicants

 

The Treasury must make provision by regulations to ensure all providers of

 

Lifetime ISAs or Help-to-Save accounts provide applicants, at the point of

 

application, with advice about the suitability of the product in question for each

 

individual applicant.”

 

Member’s explanatory statement

 

This new clause would require advice to be provided to applicants for LISAs or Help-to-Save

 

accounts which must include information on automatic enrolment and workplace saving schemes.

 

 


 

Ian Blackford

 

Dr Eilidh Whiteford

 

15

 

Page  1,  line  1,  leave out Clause 1

 

Member’s explanatory statement

 

See explanatory statement for amendment 16.

 


 

Ian Blackford

 

Dr Eilidh Whiteford

 

17

 

Parliamentary Star - white    

Clause  3,  page  2,  line  17,  leave out “1 or”


 
 

Consideration of Bill (Report Stage): 12 December 2016      

5

 

Savings (Government Contributions) Bill, continued

 
 

Ian Blackford

 

Dr Eilidh Whiteford

 

18

 

Parliamentary Star - white    

Clause  3,  page  2,  line  19,  leave out “Lifetime ISA or”

 

Ian Blackford

 

Dr Eilidh Whiteford

 

19

 

Parliamentary Star - white    

Clause  3,  page  2,  line  23,  leave out “Lifetime ISA or”

 


 

Ian Blackford

 

Dr Eilidh Whiteford

 

20

 

Parliamentary Star - white    

Clause  4,  page  2,  leave out lines 32 to 36

 

Ian Blackford

 

Dr Eilidh Whiteford

 

21

 

Parliamentary Star - white    

Clause  4,  page  3,  leave out lines 9 to 11

 


 

Ian Blackford

 

Dr Eilidh Whiteford

 

22

 

Parliamentary Star - white    

Clause  5,  page  3,  leave out line 23

 


 

Peter Dowd

 

John McDonnell

 

Rebecca Long-Bailey

 

Jonathan Reynolds

 

6

 

Clause  6,  page  3,  line  36,  leave out from “on” to end of line 37 and insert “30 April

 

2019”

 

Member’s explanatory statement

 

This amendment would delay the commencement of the Bill until the end of April 2019, when all

 

firms will be auto-enrolled and the increase in minimum contributions to eight per cent. will be

 

completed.

 



 
 

Consideration of Bill (Report Stage): 12 December 2016      

6

 

Savings (Government Contributions) Bill, continued

 
 

Ian Blackford

 

Dr Eilidh Whiteford

 

16

 

Page  5,  line  1,  leave out Schedule 1

 

Member’s explanatory statement

 

This amendment, together with amendments 15 and 17 to 22, would remove provisions for the

 

Lifetime ISA from the Bill.

 

Mr Chancellor of the Exchequer

 

3

 

Schedule  1,  page  14,  line  36,  at end insert—

 

“Part 6

 

Information sharing

 

Information sharing between HMRC and others

 

18  (1)  

Sub-paragraph (2) applies to information which—

 

(a)    

is held as mentioned in section 18(1) of the Commissioners for

 

Revenue and Customs Act 2005 (confidentiality),

 

(b)    

relates to withdrawals from a Lifetime ISA, and

 

(c)    

is relevant to whether an individual is eligible for a bonus under the

 

Help to Buy: ISA Scheme.

 

      (2)  

Information to which this sub-paragraph applies may be disclosed to the

 

Administrator for use for the purpose of establishing whether or not an

 

individual is eligible for a bonus under the Help to Buy: ISA Scheme.

 

      (3)  

In this paragraph—

 

“the Administrator” means the person who for the time being is the

 

Administrator under the Scheme Rules (as from time to time amended

 

or supplemented) of the Help to Buy: ISA Scheme, and

 

“the Help to Buy: ISA Scheme” means the scheme of that name—

 

(a)    

announced by the Treasury in March 2015,

 

(b)    

launched on 1 December 2015,

 

(c)    

for which Scheme Rules were published on that date by the

 

Treasury, and

 

(d)    

which is governed by those Scheme Rules (as from time to time

 

amended or supplemented),

 

            

and paragraph 1(1) (meaning of “bonus”) does not apply for the purposes of

 

this paragraph.

 

      (4)  

Information disclosed in reliance on sub-paragraph (2) may not be further

 

disclosed to any other person without the authority of HMRC (which may be

 

general or specific).

 

      (5)  

If revenue and customs information relating to a person is disclosed in

 

contravention of sub-paragraph (4) and the identity of the person—

 

(a)    

is specified in the disclosure, or

 

(b)    

can be deduced from it,

 

            

section 19 of the Commissioners for Revenue and Customs Act 2005

 

(wrongful disclosure) applies in relation to the disclosure as it applies in

 

relation to a disclosure of such information in contravention of section 20(9)

 

of that Act.


 
 

Consideration of Bill (Report Stage): 12 December 2016      

7

 

Savings (Government Contributions) Bill, continued

 
 

      (6)  

In sub-paragraph (5) “revenue and customs information relating to a person”

 

has the meaning given by section 19(2) of the Commissioners for Revenue and

 

Customs Act 2005.

 

      (7)  

A person who holds any information may disclose that information to HMRC

 

or an officer of Revenue and Customs if the disclosure is made for the purposes

 

of the exercise of any of the functions of HMRC, or an officer of Revenue and

 

Customs, under section 1 and this Schedule.

 

      (8)  

This paragraph does not limit the circumstances in which information may be

 

disclosed apart from this paragraph.”

 

Member’s explanatory statement

 

It is proposed that a saver buying their first home who has both a Lifetime ISA and a Help to Buy:

 

ISA will get a government bonus from one only of those accounts if they withdraw money from both

 

for their purchase. To enable the necessary cross-checking, this Amendment would allow HM

 

Revenue and Customs (“HMRC”) to provide the Administrator of the Help to Buy: ISA Scheme

 

with information about withdrawals from Lifetime ISAs. The Amendment would also allow anyone

 

to provide HMRC with information for use by HMRC in carrying out their Lifetime ISA functions.

 


 

Gareth Thomas

 

Stephen Doughty

 

1

 

Schedule  2,  page  16,  line  3,  leave out “48” and insert “24”

 

Ian Blackford

 

Dr Eilidh Whiteford

 

12

 

Schedule  2,  page  16,  line  31,  at end insert—

 

“(1A)    

The conditions specified under subsection (1) shall not include the condition that

 

the individual be over 25 years old if that individual meets all other specified

 

conditions relating to the working tax credit.”

 

Member’s explanatory statement

 

Currently those aged under 25 only qualify for Working Tax Credits if they work at least 16 hours

 

a week. This amendment would ensure any individual aged under 25 would qualify for a Help-to-

 

Save account if they met other specified criteria.

 

Gareth Thomas

 

Stephen Doughty

 

Mr Gavin Shuker

 

Mrs Louise Ellman

 

Mike Gapes

 

Anna Turley

Geraint Davies

Mr Steve Reed

Seema Malhotra

Stella Creasy

Stephen Twigg

Mr Mark Hendrick

 

2

 

Schedule  2,  page  17,  line  36,  at end insert—

 

“(d)    

a credit union.”


 
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Revised 09 December 2016