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18 Feb 2008 : Column 371W—continued

Further detail of these criteria can be found at

Treasury Ministers and officials receive representations from a wide range of organisations and individuals in the public and private sectors as part of the process of policy development and delivery. As was the case with previous Administrations, it is not the Government's practice to provide details of all such representations.

Tobacco: Exports

David Taylor: To ask the Chancellor of the Exchequer what estimate he has made of the share of the tobacco market in (a) Belgium, (b) the Netherlands and (c) Luxembourg that is UK manufactured hand-rolled tobacco. [186410]

Angela Eagle: The Government have not made an estimate of the share of the tobacco markets in (a) Belgium, (b) the Netherlands and (c) Luxembourg that is UK manufactured hand-rolled tobacco. In order to inform its monitoring and enforcement of compliance by tobacco manufacturers with Section 2 of the Finance Bill 2006, HM Revenue and Customs has had, and continues to have, discussions with manufacturers about the level of demand for their products for consumption outside the United Kingdom.

Valuation Office: ICT

Robert Neill: To ask the Chancellor of the Exchequer how much the Valuation Office Agency has spent in relation to its automated valuation model on (a) consultancy, (b) payments to CapGemini including those indirectly to CLT, (c) hardware, (d) staffing and (e) other costs since September 2005. [183267]

Jane Kennedy: Since September 2005, when the Council Tax Revaluation in England was postponed, approximately £5.5 million has been spent by the Valuation Office Agency on IT development (software,
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hardware and technical consultancy) and on other support costs associated with securing the investment in its automated valuation model (AVM). This will allow the AVM to be used as a support for the Agency’s day-to-day work, including maintenance of council tax valuation lists. Staffing costs associated with developing and maintaining the AVM are not recorded separately.

Valuation Office: Opinion Research Corporation

Robert Neill: To ask the Chancellor of the Exchequer how much the Valuation Office Agency spent on Opinion Research Corporation's services in each year since 2001; and what the purpose of each service purchased was. [178743]

Jane Kennedy: No work was undertaken for the agency prior to 2004. The total expenditure (exclusive of VAT) in the last four financial years is:

Financial year Project name Total expenditure (£)

2004-05

Annual customer survey

10,450

2005-06

Annual customer survey

18,955

People's Panel research (prior to the postponed council tax revaluation)

68,390

2006-07

Annual Customer Survey

30,000

2007-08

Annual Customer Survey

25,000

Total spend

152,795


Valuation Office: Rightmove

Robert Neill: To ask the Chancellor of the Exchequer pursuant to the answer of 8 January 2008, Official Report, column 509W, on Valuation Office: Rightmove, (1) what the timetable is for HM Revenue and Customs, on behalf of the Valuation Office Agency, to decide whether or not to exercise its option to extend the contract with Rightmove for a further 12 months; [178657]

(2) whether HM Revenue and Customs, on behalf of the Valuation Office Agency, intends to exercise its option to extend its contract for a further 12 months with Rightmove.co.uk Plc when the current 34 month contract period expires in March 2008; and if he will make it his policy to terminate the contract at the end of the 34 month period. [183270]

Jane Kennedy: This is an operational decision for the Valuation Office Agency, who should continue to gather, in the most cost-effective way, the data it requires to perform its statutory functions.

VAT: Energy

Mr. Benyon: To ask the Chancellor of the Exchequer whether it is the Government's policy to reduce value added tax on energy efficiency devices from 17.5 per cent. to 5 per cent. [185985]


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Jane Kennedy: I refer the hon. Member to the answer I gave on 23 January 2008, Official Report, column 2096W, to the right hon. Member for Scunthorpe (Mr. Morley).

Welfare Tax Credits

Julia Goldsworthy: To ask the Chancellor of the Exchequer pursuant to the answer of 6 December 2007, Official Report, columns 1500-01W, on welfare tax credits, what definition his Department uses of financial hardship in such cases. [173808]

Jane Kennedy [holding answer 1 3 December 2008]: HM Revenue and Customs approach is set out in its Code of Practice 26 available at:

HMRC published revised guidance on their website on 31 January.

Mr. Todd: To ask the Chancellor of the Exchequer what progress has been made on the review of tax credit cases announced on 25 July 2007; and what implications the outcomes of the review have for those people whose cases are subject to review and are also involved in disputes on tax credit entitlements for the immediately succeeding years. [184539]

Jane Kennedy: HM Revenue and Customs are running a three year programme of work to review tax credit awards where it appears awards were reduced as a result of new information which came to light after the award for that year had been finalised and closed. In a small number of cases the outcome of the review will be to remit an overpayment. Overpayments which are not part of the review will not be affected.

Chris Grayling: To ask the Chancellor of the Exchequer (1) what estimate he has made of the number and proportion of UK households below (a) 60 per cent., (b) 50 per cent. and (c) 40 per cent. of the median household income are eligible for, but not in receipt of (i) child benefit, (ii) working tax credit and (iii) child tax credit; [185908]

(2) what estimate he has made of the number and proportion of children living in households whose income is below (a) 60 per cent., (b) 50 per cent. and (c) 40 per cent. of the median household income are eligible for, but not in receipt of (i) child benefit, (ii) working tax credit and (iii) child tax credit. [185909]

Jane Kennedy: The information requested for tax credit recipients and children in these families could be provided only at disproportionate cost.

Estimates for the number of in-work families who were eligible but not claiming tax credits, by income used to calculate entitlement, are presented in table 4 of the HMRC publication “Child Tax Credit and Working Tax Credit. Take-up rates. 2004-05.” This is available on the HMRC website at:

It is estimated that around 98 per cent. of eligible families receive child benefit. The household income is
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not recorded for child benefit purposes as it does not affect the recipient’s award. Therefore, the information requested is not available.

Chris Grayling: To ask the Chancellor of the Exchequer what estimate he has made of the number of children who would be lifted out of poverty if all households claimed the full amount of (a) child benefit, (b) child tax credit and (c) working tax credit to which they are entitled. [185914]

Jane Kennedy: Increased financial support for families with children through tax credits and child benefit have played a key role in reducing child poverty, helping to lift 600,000 children out of relative poverty, and 1.8 million children out of absolute poverty between 1998-99 and 2005-06.

It is estimated that approximately 98 per cent. of families in the UK claim child benefit. Latest statistics show that take-up of tax credits for families with children was 82 per cent. in 2004-05, rising to 97 per cent. for those on low incomes, significantly higher than for previous comparable systems of support.

Evidence from some external studies and Treasury modelling suggest that full tax credit take-up might reduce the child poverty rate by one percentage point or more compared with 2004-05 take-up rates. Such estimates are subject to a number of uncertainties and simplifying assumptions, and should be taken as a very broad guide only.

Danny Alexander: To ask the Chancellor of the Exchequer with reference to the written statement of 25 July 2007, Official Report, columns 62-63WS, on tax credit administration, what has been the effect of rectifying the administrative error in the tax credit system on the time it takes HM Revenue and Customs to (a) resolve (i) pre-existing and (ii) fresh complaints, (b) submit information regarding (A) pre-existing and (B) fresh complaints to the Adjudicator and (c) submit information regarding (1) pre-existing and (2) fresh complaints to the parliamentary ombudsman in (x) affected and (y) unaffected cases. [186017]

Jane Kennedy: The administrative error had an initial impact on the time it took HM Revenue and Customs (HMRC) to handle complaints about tax credits. The position has now been recovered for the majority of cases.

Welfare Tax Credits: Complaints

Bob Spink: To ask the Chancellor of the Exchequer how many complaints the Tax Credits Office received on tax credits in each of the last five years. [185305]

Jane Kennedy: For information about the number of complaints received in the Tax Credit Office for each year from January 2004 to May 2007 I refer the hon. Gentleman to the answer given to the hon. Member for Yeovil (Mr. Laws) on 13 June 2007, Official Report, column 1125W. Information about the numbers of complaints about tax credits received in the Tax Credit Office in each month from June to December 2007 is given in the following table.


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Month 2007 Number of complainants (approximate)

June

3,850

July

3,400

August

3,250

September

2,800

October

3,150

November

3,350

December

1,900


Welfare Tax Credits: Northern Ireland

Mr. McGrady: To ask the Chancellor of the Exchequer what assessment he has made of the cost of recovering overpayment of tax credits from claimants in Northern Ireland. [184728]

Jane Kennedy: The cost of recovering overpayments of tax credits in Northern Ireland is not available centrally and could be provided only at disproportionate cost.

I refer to the answer I gave to the hon. Member for Fareham (Mr. Hoban) on 31 January 2008, Official Report, column 681W.

Welfare Tax Credits: Overpayments

Jeremy Wright: To ask the Chancellor of the Exchequer when his Department expects to publish details of the new test intended to replace the reasonable belief test used in disputed cases of overpayment of tax credits. [169090]

Jane Kennedy: HM Revenue and Customs published the revised guidance on their website at www.hmrc.gsi.gov.uk on 31 January 2008.

Mr. Drew: To ask the Chancellor of the Exchequer what the reasons were for the recent changes to HM Revenue and Customs’ Code of Practice 26, What Happens if We Have Paid You too Much Tax Credit; and if he will make a statement. [184628]

Jane Kennedy [holding answer 5 February 2008]: HMRC published the new Code of Practice 26 on its website (www.hmrc.gov.uk/leaflets/cop26.pdf.) on 31 January 2008. Details were also given in my letter to the parliamentary and health service ombudsman of 29 January 2008 setting out the Government’s response to her report on tax credits. That letter was deposited in the Library of the House.

HMRC has consulted widely on the changes seeking the views of the adjudicator, the ombudsman and also a number of the voluntary organisations, including the Child Poverty Action Group, Citizens Advice and the Low Incomes Tax Reform Group.

The new code no longer has a reference to what is or is not ‘reasonable’ for a customer to have understood. Instead, HMRC and customers’ respective responsibilities are clearly set out in the code.

HMRC will be responsible for:


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Importantly, the Department will have a time limit (30 days) to act on information reported to them.

The customer’s responsibilities will be to:

If a customer reports a change of circumstance then HMRC have 30 days to act on that change. If HMRC fail to act within 30 days then any resulting overpayment after the 30 days will be remitted.

Welfare Tax Credits: Telephone Services

Mr. Hoban: To ask the Chancellor of the Exchequer how much was spent on staff recruitment for the Tax Credits Helpline in each year for which figures are available. [180233]

Jane Kennedy: This information is not available in the format requested as the data cannot be disaggregated from other costs.

Mr. Hoban: To ask the Chancellor of the Exchequer what methods have been used to recruit staff for the Tax Credits Helpline in the last year. [180235]

Jane Kennedy: HMRC does not recruit staff specifically for the Tax Credits Helpline, but instead advertises for Contact Centre Advisers. Over the last year HMRC has advertised externally in Local and National newspapers, on internet sites, on local radio and conducted road shows, attended Job fairs and Job Centre Plus offices. HMRC also recruits advisers internally and from other Government Departments by advertising vacancies through internal departmental intranet sites and publications.

Mr. Hoban: To ask the Chancellor of the Exchequer how many staff at each grade were employed on the Tax Credits Helpline in each year since it was established. [180419]

Jane Kennedy: I refer the hon. Member to the answer given by my right hon. Friend the former Paymaster General on 25 July 2006, Official Report, column 1392W. The number of full-time equivalent (FTE) staff employed on the Tax Credit Helpline for the year ended 31 March 2007 is estimated to be around 4,000, and for the year ended 31 March 2008 the figures are not yet available.

The analysis of these figures “by grade” is not available. At any given time, the numbers of staff working on the Tax Credits Helpline can vary considerably from the figures given as staff are increasingly deployed flexibly across HMRC’s Helplines to respond to changing customer demand.


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