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7 Jul 2005 : Column 619W—continued

Poverty Reduction

Mr. Amess: To ask the Chancellor of the Exchequer what steps he is taking to reduce poverty in persons aged over 65 years; and if he will make a statement. [10539]

Mr. Ivan Lewis: Poverty and social exclusion are complex and multi-dimensional issues, affecting many aspects of people's lives—including their living standards, health, housing, the quality of their environment and not just low income. The Department for Work and Pensions "Opportunity for all" report sets out the Government's strategy for tackling poverty and social exclusion and reports progress against a range of measures.

However, 2003–04 data show nearly 2 million pensioners have been lifted out of absolute low income since 1997. Compared with the 1997 system, in 2005–06, as a result of the Government's measures including the pension credit, pensioner households will be on average £29 a week better off while the poorest third of pensioner households will be on average £39 a week better off.

Alongside a 7 per cent. real increase in the basic state pension, winter fuel payments and free television licences, pension credit has been key to this increase in income. Pension credit which now pays over £6 billion a year to our poorest pensioners, guaranteeing a minimum income of £109.45 a week for single pensioners and £167.05 couples (over age 60). 2.7 million pensioner households (3.3 million individuals) were receiving pension credit at end March 2005. The Government are committed to increasing the guarantee credit element of pension credit by earnings next year and in the next spending round 2006–08.

Public Borrowing

Mr. George Osborne: To ask the Chancellor of the Exchequer how he calculates the start and end points of the economic cycle; when, for the purposes of calculating the golden rule, the current economic cycle (a) started and (b) is expected to finish; and when his Department estimates that the next economic cycle will start. [9857]

Mr. Ivan Lewis: The Treasury's transparent and consistent methodology for dating the cycle uses a wide range of survey and other information and is explained in "Trend Growth: Recent Developments and
 
7 Jul 2005 : Column 620W
 
Prospects" published alongside Budget 2002 and "Fiscal Policy: Public Finances and the Cycle" published alongside Budget 1999. The most recent "Financial Statement and Budget Report 2005" (HC 372) gave an assessment of when the current cycle is judged to have started and is expected to end.

Science Investment

Dr. Iddon: To ask the Chancellor of the Exchequer whether the projected figures for increasing public investment in scientific research set out in the 2004 Spending Review are contingent on increases in investment by the private sector; and if he will make a statement. [9838]

John Healey: The 10-year Science and Innovation Investment framework set out the Government's intention to increase investment in the public science base at least in line with the trend growth rate of the economy through the 10-year period, increasing science spending as a proportion of GDP.

However, the Government's overall ambition is that overall levels of R and D in the economy should reach 2.5 per cent. of GDP.

The 10-year framework recognised that this scenario represents a considerable challenge for both Government and UK business, which can only be achieved if the Government's commitment to invest substantially in the science base is matched by the private sector and leading charitable funders, and in particular that it is clear that private sector R and D funding is on a new and growing trajectory.

Tax Avoidance Schemes

Mr. Austin Mitchell: To ask the Chancellor of the Exchequer if he will introduce legislation to prevent accountancy firms selling aggressive tax avoidance schemes from securing contracts awarded by his Department. [9408]

Dawn Primarolo: The Government will continue to award contracts in accordance with procurement procedures. I refer my hon. Friend to my answer of 15 June 2005, Official Report, column 391W.
 
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Tax Credits

Mr. Laws: To ask the Chancellor of the Exchequer what his estimate is of the proportion of overpaid tax credits for 2003–04 which so far have been written off; and if he will make a statement. [8576]

Dawn Primarolo: I refer the hon. Member to the reply I gave him on 4 July 2005, Official Report, column 96W.

Mrs. Iris Robinson: To ask the Chancellor of the Exchequer, what (a) the total amount of tax credit payments claimed in Northern Ireland since their introduction, (b) the total amount of overpayments, (c) the value of overpayments which have been written off and (d) the value of overpayments retrieved is. [8801]

Dawn Primarolo: Estimates of the total amount of tax credits entitlement, broken down by country and region, appear in the HMRC publication "Child and Working Tax Credits Statistics. Finalised Awards 2003–04.Geographical analyses."

The numbers of tax credits awards where there was an underpayment or overpayment at 5 April 2004 following finalisation also appear in the publication "Child and Working Tax Credits Statistics. Finalised 2003–04. Supplement on payments in 2003–04. Geographical analyses."

The estimates in both these publications are based on samples and are subject to significant sampling uncertainty. These publications can be found on the HMRC website at http://www.hmrc.gov.uk/stats/personal-tax-credits/cwtc-geog-stats.htm.

Information about the amounts written off is not available at a regional level.

Mr. Laws: To ask the Chancellor of the Exchequer what assessment he has made of the performance of the tax credits system against targets set for it over the period March 2003 to June 2005; and if he will make a statement. [8846]

Dawn Primarolo: Details of the Inland Revenue's performance against their tax credits targets for 2003–04 were published in their annual report and accounts in October 2004, and can be found on the HMRC website at http://www.hmrc.gov.uk/about/reports.htm.

The spring departmental report 2005, which can be found at the same address, gives progress against the targets in 2004–05. The Department will publish final results for 2004–05 in its annual report, which will be available on its website at www.hmrc.gov.uk.

The results for April and May 2005 will be covered in the 2005–06 annual report when that is published.

Mr. Laws: To ask the Chancellor of the Exchequer, if he will list the management information collected on a regular basis and reported to Ministers on the tax credit system. [8859]

Dawn Primarolo: I hold regular meetings with senior officials responsible for the delivery of tax credits at which I ask for various types of information.
 
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Section 40 of the Tax Credit Act requires the Board of Inland Revenue, now HM Revenue and Customs, to make an annual Report to the Treasury about tax credits. Section 40(2) requires the Treasury to publish the annual Report and lay a copy before both Houses.

Mr. Redwood: To ask the Chancellor of the Exchequer (1) how many people have been notified of overpayments of tax credits since 5 May; [8879]

(2) how many people received overpayments of tax credits before 5th May. [8883]

Dawn Primarolo [holding answer 4 July 2005]: Almost all families whose 2003–04 awards were overpaid at finalisation had been notified of this by 5 May 2005.

Overpayments are not identified until awards are finalised after the end of the financial year. For 2004–05 awards, this process is currently under way. Therefore estimates of numbers of overpayments or underpayments for 2004–05 awards at 5 April 2005 will not be available until after family circumstances and incomes for 2004–05 have been finalised. The most recent estimates available for the net amount paid in tax credits and the net amount of overpayments is for awards at 5 April 2004 based on final family circumstances and incomes for 2003–04. They appear in the HMRC publication "Child and Working Tax Credits Annual statistics. 2003–04 Payments." The estimates are based on samples and are subject to significant sampling uncertainty.

Mr. George Osborne: To ask the Chancellor of the Exchequer how many complaints about tax credits have been made to HM Revenue and Customs in each of the last three financial years. [9729]

Dawn Primarolo: For 2003–04 and 2004–05 (the first two years of the new tax credits), I refer the hon. Gentleman to the answer I gave my hon. Friend the Member for Walsall, North (Mr. Winnick) on 15 June 2005, Official Report, columns 394–95W.

Mr. George Osborne: To ask the Chancellor of the Exchequer how many people are employed to work for the tax credit helpline, broken down by where staff are based in the UK. [9730]

Dawn Primarolo: The following table shows the staff numbers in full time equivalents (FTE) employed to work on the tax credit helpline by UK location at the end of May 2005.

UK location	Staff numbers (FTE)
May 2005
Belfast	100
Peterlee	600
Livingston	300
Merry Hill	350
Dundee	600
Bathgate	650
Newcastle	600
Total	3,200

Mr. Jim Cunningham: To ask the Chancellor of the Exchequer if he will make a statement on the progress made in recovery of overpaid tax credits. [9739]

 
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Dawn Primarolo: No estimates of recovered overpayments can be made until the departmental accounts for 2004–05 have been prepared and the trust statement published.

Mr. Laws: To ask the Chancellor of the Exchequer by what date he intends to introduce a statutory test for recovery of overpaid tax credits; whether the test will include an independent right of appeal; and if he will make a statement. [9842]

Dawn Primarolo: I refer the hon. Member to my statement of 26 May 2005, Official Report, column 802, on tax credits.

Mr. George Osborne: To ask the Chancellor of the Exchequer how many people are employed within Her Majesty's Revenue and Customs to handle complaints relating to tax credits. [9844]

Dawn Primarolo: At 28 May 2005 HM Revenue and Customs (HMRC) had nearly 400 full-time equivalent staff working in the Tax Credit Office handling tax credit complaints. These staff also deal with compensation in accordance with complaints and redress procedures explained in the Department's Code of Practice 1: "Putting things right".

Mr. Laws: To ask the Chancellor of the Exchequer what estimate he has made of the (a) number and (b) total value of excess tax credit payments and overpayments where there was no disregard of income rises of up to £2,500 in (i) 2003–04 and (ii) 2004–05; and if he will make a statement. [9866]

Dawn Primarolo: I refer the hon. Member to my reply to him 4 July 2005, Official Report, column 98W. The £2,500 disregard applies to all tax credit awards.

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