Seventh Report of Session 2022–23

Instruments reported

At its meeting on 29 June 2022 the Committee scrutinised a number of instruments in accordance with Standing Orders. It was agreed that the special attention of both Houses should be drawn to one of those considered. The instrument and the grounds for reporting are given below. The relevant departmental memorandum is published as an appendix to this report.

1S.I. 2022/555: Reported for requiring elucidation

Tax Credits and Child Benefit (Miscellaneous Amendments) Regulations 2022

1.1The Committee draws the special attention of both Houses to these Regulations on the ground that they require elucidation in one respect.

1.2These Regulations, which are subject to the negative resolution procedure, make the provision of details of an appropriate bank or other account an entitlement condition for child benefit. Paragraph 7.4 of the Explanatory Memorandum states that “Provisions exist for a manual payment solution in limited exceptions where a claimant is unable to open a bank account. These exceptions will be/are considered upon receipt of a response from the claimant to HMRC’s request for information.” The Committee asked Her Majesty’s Revenue and Customs to explain how a claimant will be made aware of the provisions for a manual payment solution. In a memorandum printed as an Appendix, the Department explains that the form for a new claim for child benefit contains a tick box where the person can indicate that they do not have a bank or building society account and that existing claimants can contact the Department about continuing a manual payment solution. If the Department is satisfied after contacting the person that it is appropriate to do so, it will make payments by way of the manual payment solution in exceptional circumstances. The Committee accordingly reports these Regulations for requiring elucidation, provided by the Department’s memorandum.

Instruments not reported

At its meeting on 29 June 2022 the Committee considered the instruments set out in the Annex to this Report, none of which were required to be reported to both Houses.

Annex

Draft instruments requiring affirmative approval

Instruments subject to annulment

Draft instruments subject to annulment

Instruments not subject to Parliamentary proceedings not laid before Parliament

Appendix: Memorandum from Her Majesty’s Revenue and Customs

S.I. 2022/555

Tax Credits and Child Benefit (Miscellaneous Amendments) Regulations 2022

1. The Committee has asked Her Majesty’s Revenue and Customs for a memorandum on the following point(s):

By way of expansion of paragraph 7.4 of the Explanatory Memorandum, explain how a claimant will be made aware of provisions for a manual payment solution, in particular, whether HMRC’s request for information will include details of those provisions.

2. A new claim for Child Benefit is made on form CH2. That form requires details of an account into which payments of Child Benefit can be made. There is a tick box on that form for a customer to indicate if they do not have a bank or building society account. When HMRC receives a form with the box ticked, we will contact the individual to understand the reason why that person does not have an account. If HMRC is satisfied that in the particular circumstances of that case it is appropriate to do so, HMRC will make payments of Child Benefit by way of the manual payment solution. Manual payments are only made in exceptional circumstances and where appropriate to the circumstances of the particular case.

3. If an existing Child Benefit claimant needs to make any changes to their claim, including how payment is made, they would need to contact HMRC about the change. As above, if HMRC is satisfied that it is appropriate to do so in that case, continuing payment of the Child Benefit claim will be made by way of the manual payment solution.

Her Majesty’s Revenue and Customs

21 June 2022

Formal Minutes

Wednesday 29 June 2022

Virtual meeting

Members present

Jessica Morden, in the Chair

Lord Beith

Lord Chartres

Dr James Davies

Baroness Gale

Lord Haskel

Paul Holmes

Baroness Newlove

Lord Smith of Hindhead

Report consideration

Draft Report (Seventh Report), proposed by the Chair, brought up and read.

Ordered, That the draft Report be read a second time, paragraph by paragraph.

Paragraphs 1.1 to 1.2 read and agreed to.

Annex agreed to.

A paper was appended to the Report as an Appendix.

Resolved, That the Report be the Seventh Report of the Committee to both Houses.

Ordered, That the Chair make the Report to the House of Commons and that the Report be made to the House of Lords.

Adjournment

Adjourned till Wednesday 6 July at 3.40 p.m.