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12 May 2003 : Column 23W—continued

TREASURY

Family Tax Credits

Mr. Burstow: To ask the Chancellor of the Exchequer how many family tax credit claims were outstanding in each of the last 12 months. [110557]

Dawn Primarolo: For the cumulative number of claims for the child and working tax credits received in each month from August 2002 until February 2003, I refer the hon. Member to my answer to the hon. Member for Havant (Mr. Willetts) on 14 April 2003, Official Report, columns 546–47W. 3.9 million claims were received by 9 April and over 4 million have been received to date.

Mr. Lidington: To ask the Chancellor of the Exchequer if he will make it his policy to pay interest on late payments of child tax credit in cases where the delay was the responsibility of his Department. [109854]

Dawn Primarolo [holding answer 28 April 2003]: Where the Inland Revenue were unable to deliver to tax credits claimants the level of service which might have been expected, I will consider what, if any, further action may be appropriate.

Debt Relief

Mr. Pike: To ask the Chancellor of the Exchequer what plans he has to pursue reform of the heavily indebted poor countries—HIPC—initiative; with particular reference to the use of the debt to export ratio as a measure of debt sustainability; and if he will make a statement. [111567]

John Healey: Within the enhanced HIPC initiative it is essential to have clear and transparent rules for the provision of debt relief, and the debt to export ratio is a useful indicator of debt sustainability. However, looking forward, after the provision of debt relief, such a broad measure may not always be appropriate in assessing country plans to finance their Poverty Reduction Strategies, and the associated level of borrowing. In particular the UK is concerned that enforcing the debt to export ratio could constrain the ability of some developing countries to access their allocation of concessional finance. The UK is working closely with the IMF and the World Bank to develop a more integrated approach to debt sustainability for financing poverty reduction. The Government acknowledges that debt relief is not a panacea for broader economic development challenges problems; even the provision of 100 per cent. debt relief to all low-income countries would still fall short of the resources needed to meet the Millennium Development Goals. That is why the Chancellor and the Secretary of State for International Development have proposed an International Finance Facility (IFF) that would seek to double the amount of development aid from just over $50 billion a year today to $100 billion per year in the years to 2015.

Mr. Pike: To ask the Chancellor of the Exchequer if the UK Government will support measures to tackle the shortfall in the HIPC Trust Fund at the forthcoming G8 summit; and if he will make a statement. [111574]

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John Healey: At the 2002 summit in Kananaskis the UK helped secure agreement from the G7 to fund the shortfall in the enhanced HIPC initiative, recognising that it could be up to US $1 billion. Ahead of the Annual Meetings of the IMF and World Bank in September 2002, the UK pledged its share of the $1 billion shortfall, $120million, to encourage other donors to make firm pledges. Donors have now made pledges totalling some $850m, and the 2003 Spring Meetings urged donors to translate these into concrete contributions in the coming months.

At the forthcoming G8 summit the UK will push for a change in the rules of the enhanced HIPC initiative to exclude additional voluntary bilateral debt relief from the calculation of any additional debt relief or topping up at Completion Point. This measure could provide an estimated $1 billion extra debt relief to HIPCs.

The Government acknowledges that debt relief is not a panacea for broader economic development challenges problems; even the provision of 100 per cent. debt relief to all low-income countries would still fall short of the resources needed to meet the Millennium Development Goals. That is why the Chancellor and the Secretary of State for International Development have proposed an International Finance Facility (IFF) that would seek to double the amount of development aid from just over $50 billion a year today to $100 billion per year in the years to 2015.

Euro

Mr. Bercow: To ask the Chancellor of the Exchequer what recent estimate he has made of the likely cost (a) for public funds and (b) to the public sector of changeover from the pound to the euro. [112288]

Ruth Kelly: Should the UK decide to join the euro, the cost to the public sector of conversion to the euro would depend on the detailed approach that the UK took to the changeover and the extent to which organisations are able to build in euro compatibility where IT systems are being upgraded or purchased for other reasons. The outline National Changeover Plans provide a planning framework. All stakeholders acknowledge that costs can be minimised through careful and early planning.

Income Tax (Overpayment)

Mr. Evans: To ask the Chancellor of the Exchequer what the average time taken by the Inland Revenue for repayment of income tax to taxpayers who have overpaid was in the last year for which figures are available. [112928]

Dawn Primarolo: The Inland Revenue do not keep this information in respect of all cases where an overpayment might arise.

In the year to April 2002, the Inland Revenue offices which specifically deal with claims for repayment of income tax made by individuals (that is, not claims contained within self-assessment tax returns or arising from overpayments of income tax under the PAYE scheme) dealt with 98.8 per cent. of claims within 20 working days. In the same year, other Inland Revenue tax offices also dealt with 82.98 per cent. of all post (which would have included repayment claims) within 15 working days.

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Self-assessment

Matthew Taylor: To ask the Chancellor of the Exchequer what the unit costs of (a) self-assessed taxpayers and (b) non self-assessed taxpayers were in the latest year for which data is available on a comparable basis to table 2 of Inland Revenue: The Government's expenditure plans 2000–01–2001–02, Cm 4617. [110814]

Dawn Primarolo: The information is as follows:

Inland Revenue

The data requested cannot be supplied on a comparable basis to table 2 referred to without incurring a disproportionate cost to the Department. That table reflected the direct costs associated with delivering SA and Non-SA work. There has subsequently been a change to a more comprehensive basis of costing this work—to include all associated costs of delivery. This gives a more accurate unit costing but one that cannot be compared on a like with like basis with the unit costs in table 2. Additionally, there have been changes to the Department's IT systems and the office structure within which this work is administered.

Set out as follows are the unit costs of SA and Non SA work for 1999–2000 to 2001–02 on the 'all up' cost basis that is now used.

1999–20002000–012001–02
Non SA taxpayers (thousand)26,67526,01026,600
Costs (£ million)485.6694.3741.6
Cost per taxpayer (£)18.2026.6927.88
SA taxpayers (thousand)9,3469,3249,246
Costs (£ million)1,011.3747.4756.3
Cost per taxpayer (£)108.2180.1681.80

Tax Credit Helpline

Mr. Howard: To ask the Chancellor of the Exchequer how much was spent on (a) setting up and (b) running the working tax credit and child tax credit helpline in each month since April 2002. [111382]

Dawn Primarolo: The full costs incurred on the provision of helplines for new tax credits in the year up to 31 March 2003 are estimated at £53 million. Of that figure, £29 million relates to setting up costs and £24 million to running costs, including salaries.

Tax Credits

Mr. Michael Foster: To ask the Chancellor of the Exchequer how many advertisements the Inland Revenue have placed on (a) advertising poster sites in Worcestershire and (b) advertising poster sites on buses operating in Worcestershire to promote the take up of child tax credit and working tax credit. [110156]

Mr. Bercow: To ask the Chancellor of the Exchequer how many advertisements the Inland Revenue have placed on (a) advertising poster sites in Buckinghamshire and (b) advertising poster sites on buses operating in Buckinghamshire to promote the take-up of (i) child tax credit and (ii) working tax credit. [110473]

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Dawn Primarolo: The Inland Revenue's national campaign to encourage take-up of child tax credit and working tax credit has used a variety of media, including television, radio, national press, magazines and the internet.

The campaign has involved very limited advertising on outdoor poster sites and no advertising on buses, but posters have been displayed inside post offices and at other indoor locations.

Mr. Webb: To ask the Chancellor of the Exchequer how many successful child tax credit applications were received (a) before and (b) after 31 January; and how many of those who opted for (i) weekly payment and (ii) monthly payment are receiving their entitlement. [112340]

Dawn Primarolo: There is a single claim form for child tax credit and working tax credit. About 2.7 million claims were received by the end of January 2003, and over 4 million by 28 April.

Around 3.2 million awards were in payment, or were set up for payment, by 28 April. About a third of all child tax credit claims processed so far have opted for weekly payment.

Mr. Cox: To ask the Chancellor of the Exchequer what steps his Department is taking (a) to inform families of the introduction of the working families tax credit and how this benefit can be claimed and (b) to ensure that families entitled to claim the benefit do so; and what assessment he has made of the ease of completion of the application form. [111191]

Dawn Primarolo: The working tax credit and child tax credit were introduced on 6 April 2003. They replaced the working families' tax credit (WFTC), disabled person's tax credit and the children's tax credit.

Over four million claims have already been received—half a million of them over the internet without the need for a paper claim. Around 3.2 million awards are already in payment or are set up for payment.

To ensure awareness, the Inland Revenue has undertaken a high profile advertising campaign—which is continuing. The campaign has made clear that people can choose to claim either over the internet or on paper. For those claimants who do not claim on line, the single claim form for both credits is, at 12 pages, half the length of the WFTC form that it replaced.


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