Written questions by Snowden.

How many and what proportion of families, who had their child benefit reinstated following the review into those who were suspended during the period of data-sharing between HMRC and the Home Office, were found to be eligible as a result of PAYE checks.

As HMRC informed the Treasury Select Committee in its letter dated 14 November 2025, it is unable to completely disaggregate the number of cases where eligibility was confirmed via a subsequent PAYE check from those where evidence was provided by the customer.The information from the pilot remains HMRC’s best assessment of the effectiveness of the activity using international travel data to reduce error and fraud.

At what level was the decision made to remove the PAYE checks after the Child Benefit compliance pilot.

As HMRC’s First Permanent Secretary explained to the Treasury Select Committee on 13 January, the PAYE check was removed to streamline the process at an operational level, with a view to employment status being tested as part of any subsequent customer enquiry. The Department has apologised for removing the PAYE check and the impact on some of its customers of this change. HMRC has taken swift action to reinstate the check, put things right for affected customers and make further improvements to the process. Lessons learned for the future include strengthening the governance from pilots to business as usual activities.

On what date (i) HMRC and (ii) ministers in her Department were notified of child benefit claimants incorrectly having benefits stopped due to data sharing with the Home Office.

HMRC use international travel data and other checks to help tackle Child Benefit error and fraud, which is expected to save around £350 million over the next five years. As HMRC scaled up the work through September and into October 2025, it came to HMRC’s attention in mid-October that the removal of the PAYE check had resulted in some customers being incorrectly included in the compliance campaign. HMRC took swift action to reinstate the PAYE check and apply it retrospectively, including no longer suspending payments at the outset of their enquiries. After understanding the issues, HMRC notified Treasury ministers in late October and have kept them fully informed throughout since.

Pursuant to the Answer of 13 January 2025 to Question 103948 on Child Benefit: Fraud, if she will make an estimate of the cost to her Department of time spent reviewing old cases.

The projected savings for the residency compliance work are a component of a wider measure announced at Autumn Budget 24 and forms part of the overall forecast for Child Benefit expenditure. The estimate of £350 million over five years for the total saving from this measure will be reviewed and updated as part of a future fiscal event in the usual way and as more data becomes available. From the c. 23,500 cases, 5,367 enquiries remained open on 31 December 2025. HMRC expects to have concluded these by the end of February 2026. Resources used to review cases opened between August and October 2025 are those which are already allocated to this exercise through the funding announced at Autumn Budget 2024.

With reference to the press release entitled Child Benefit action to save £350 million from claimants abroad, published on 22 August 2025, and to the correspondence from the Chief Executive and First Permanent Secretary of the Treasury to the Chair of the Treasury Committee of 14 November 2025, if she will make a revised estimate of the potential impact of the Government’s policies on tackling benefit fraud on the cost to the public purse of child benefit.

The projected savings for the residency compliance work are a component of a wider measure announced at Autumn Budget 24 and forms part of the overall forecast for Child Benefit expenditure. The estimate of £350 million over five years for the total saving from this measure will be reviewed and updated as part of a future fiscal event in the usual way and as more data becomes available. From the c. 23,500 cases, 5,367 enquiries remained open on 31 December 2025. HMRC expects to have concluded these by the end of February 2026. Resources used to review cases opened between August and October 2025 are those which are already allocated to this exercise through the funding announced at Autumn Budget 2024.

Pursuant to the Answer of 13 January 2025 to Question 103948 on Child Benefit: Fraud, when she estimates the c 23,500 cohort will have been fully reviewed.

The projected savings for the residency compliance work are a component of a wider measure announced at Autumn Budget 24 and forms part of the overall forecast for Child Benefit expenditure. The estimate of £350 million over five years for the total saving from this measure will be reviewed and updated as part of a future fiscal event in the usual way and as more data becomes available. From the c. 23,500 cases, 5,367 enquiries remained open on 31 December 2025. HMRC expects to have concluded these by the end of February 2026. Resources used to review cases opened between August and October 2025 are those which are already allocated to this exercise through the funding announced at Autumn Budget 2024.

Pursuant to answer 98955 of 16 December 2025 on Child Benefit, how many of the 7,781 enquiries which remained open have since been addressed; and what the outcomes were.

In total, of the 23,794 enquiries opened, 1,109 have been determined non-compliant. 5,637 remain open.

How many new enquiries were opened into child benefit claims which were suspended from claimants as a result of data-sharing between HMRC and the Home Office in the period 1 to 31 December 2025.

There were no new Child Benefit compliance enquiries opened using Home Office international travel data in the period 1st to 31st December 2025. This is because HMRC's focus during that period was on reviewing the c. 23,500 cohort.

What metrics her Department will use to evaluate the success of the new first-year allowance in stimulating growth and productivity.

The government has introduced a new 40% first-year allowance (FYA) from 1 January 2026. This is a permanent new feature of the capital allowance regime. This new FYA will allow businesses to deduct much of the cost of their investment in the year they make that investment and lower their tax bill. Crucially, this FYA will be available for assets bought for leasing and for unincorporated businesses which do not benefit from full expensing, increasing the amount of relief that can be claimed in the year of investment. For future investment, the present value and cost of capital for businesses that claim the new FYA remains broadly the same when considered alongside the changes to writing down allowances also announced at Budget. The expected impacts of this measure and planned monitoring are set out on gov.uk:Capital allowances: new first-year allowance and reducing main rate writing-down allowances - GOV.UK This policy is UK-wide and so businesses across all regions of the UK can claim this allowance. We are attracting international investors to opportunities across the country, with the £10 billion of investment commitments announced at our recent Regional Investment Summit.

What assessment she has made of the potential impact of the new 40% first year allowance for for main-rate plant and machinery on the level of regional investment and economic growth.

The government has introduced a new 40% first-year allowance (FYA) from 1 January 2026. This is a permanent new feature of the capital allowance regime. This new FYA will allow businesses to deduct much of the cost of their investment in the year they make that investment and lower their tax bill. Crucially, this FYA will be available for assets bought for leasing and for unincorporated businesses which do not benefit from full expensing, increasing the amount of relief that can be claimed in the year of investment. For future investment, the present value and cost of capital for businesses that claim the new FYA remains broadly the same when considered alongside the changes to writing down allowances also announced at Budget. The expected impacts of this measure and planned monitoring are set out on gov.uk:Capital allowances: new first-year allowance and reducing main rate writing-down allowances - GOV.UK This policy is UK-wide and so businesses across all regions of the UK can claim this allowance. We are attracting international investors to opportunities across the country, with the £10 billion of investment commitments announced at our recent Regional Investment Summit.

What steps HMRC is taking to ensure compliance with the new VAT rules for private hire vehicle operators following the closure of access to the Tour Operators Margin Scheme.

HMRC is undertaking a range of measures to ensure compliance with the new VAT rules for private hire vehicle operators (“PHVOs”) following the changes made to the Tour Operators’ Margin Scheme (“TOMS”). These measures include publishing a Revenue and Customs Brief (“R&CB”) to explain the legislative changes and to outline the correct processes for operators, working closely with industry stakeholders to address concerns and ensure that operators understand their obligations under the new rules. HMRC’s compliance procedures involve routine audits, risk assessments, and investigations of discrepancies to ensure that all businesses adhere to the VAT requirements. HMRC expects all businesses to comply with their tax obligations, however where they do not HMRC will take steps to correct errors and if necessary use their powers to recover unpaid VAT.

Whether she plans to bring forward further reforms to VAT treatment within the taxi and private hire vehicle sector.

Private hire vehicle (PHV) services provided by VAT-registered businesses are, and always have been, subject to the standard rate of VAT (20%). The Government’s announcement at Autumn Budget 2025 puts an end to the exploitation of a VAT administration scheme, designed for the tour operator sector, by a small number of large private hire vehicle operators seeking to pay a lower rate of VAT than others. This won’t affect smaller operators outside London whose drivers contract directly with passengers, or black cabs, neither of which have attempted to exploit this scheme.

Pursuant to the written answer of 9 December 25 to question 96953 on Child Benefit, how many of the 23,500 compliance enquiries (i) were confirmed to be eligible, (ii) were found to have been incorrectly receiving the benefit and (iii) are yet to receive an outcome.

HMRC has now completed its review of Child Benefit compliance cases where a PAYE check had not been undertaken. As of 30 November 2025, out of the 23,794 cases opened between August and October 2025, 14,994 Child Benefit customers have been confirmed to be eligible to Child Benefit. Of the remaining 8,800 cases, 1,019, have been determined to have been incorrectly receiving Child Benefit, and 7,781 enquiries remain open as the customer has not yet provided evidence to enable a final determination of residency. The data from the 23,794 cases is not comparable with the pilot. Recognising the issues with the implementation of the expansion, HMRC put in place an expediated process for customers that varied from the way it applied checks in the pilot. The information from the pilot remains HMRC’s best assessment of the effectiveness of the activity using international travel data to reduce error and fraud.

What assessment she has made of the effectiveness of the online Self Assessment Time to Pay system in reducing the number of late payment penalties.

HMRC’s Time to Pay (TTP) arrangements help taxpayers to pay their liabilities in affordable and sustainable instalments. Late payment penalties do not apply provided the plan is agreed before penalty trigger dates and instalments are paid on time. HMRC’s online TTP service for Self Assessment offers taxpayers the option to set up their own payment plans for Self Assessment debts up to £30,000. HMRC publishes data on TTP arrangements as part of its quarterly performance updates and in its Annual Report and Accounts. Over 90% of TTP arrangements are completed successfully, demonstrating their effectiveness in supporting compliance and reducing penalties.

What recent discussions she has had with the brewing and pub sector on business rates affordability following the November Budget.

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base. At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties as they recover from the pandemic. To support with bill increases, at the Budget, the Government announced a support package worth £4.3 billion over the next three years, including protection for ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. This means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest. More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. The Government is doing this by introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year, and will benefit over 750,000 properties, including those on the high street. The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit. Treasury Ministers and officials engaged with a wide range of stakeholders across the pub and hospitality sector ahead of the Budget to discuss business rates.

What criteria will guide decisions on whether an overnight stay levy is “modest” and appropriate for local areas; and will there be a cap.

The precise design and scope of the power for Mayors to introduce a visitor levy is still under development. Mayors will decide whether to introduce a levy and, if so, consult on specific proposals. We expect Mayors to engage constructively with businesses and their communities to hear their concerns. This will inform their decisions regarding whether and how a levy will be applied and how any revenue is spent. Giving this power to local leaders who best understand their region enables them to tailor it to growing their local economies The Government has published a consultation running until 18 February 2026, so that the public, businesses, and local government can shape the design of the power to introduce a levy that will be devolved to local leaders. The consultation seeks views on whether there should be a cap on the rate.

How many staff in her Department are permitted to undertake diversity-related network time during core working hours; and what proportion of overall working time are they permitted to spend on such network activity.

Participation in staff networks is primarily voluntary and carried out in addition to an employee’s job role.

How many new enquiries were opened into child benefit claims which were suspended from claimants as a result of data-sharing between HMRC and the Home Office in the period 1st to 30th November 2025.

There were no new Child Benefit compliance enquiries opened using Home Office international travel data in the period 1st to 30th November 2025. This is because our focus during that time was on reviewing the c. 23,500 already opened.

If she will make an estimate of the impact of the pay per mile tax on electric vehicle usage in the Fylde constituency.

As announced at Budget 2025, the Government is introducing Electric Vehicle Excise Duty (eVED) from April 2028, a new mileage charge for electric and plug-in hybrid cars, recognising that EVs contribute to congestion and wear and tear on the roads but pay no equivalent to fuel duty. When eVED takes effect in April 2028, eVED rates will be set at 3p per mile for electric vehicles, which is half the equivalent fuel duty rate paid by the average petrol/diesel driver, ensuring that driving an electric vehicle continues to be an attractive choice for consumers. The rate will be set at 1.5p per mile for plug-in hybrids, recognising that they will continue to pay fuel duty on miles driven in petrol mode. An average EV driver driving 8,000 miles per year will pay around £240 per year or £20 per month. As set out by the OBR, the estimated net impact of eVED and other Budget measures, including the ECG and ECS, is 120,000 fewer new EV sales across the forecast period. This is against a baseline which assumes EV sales more than triple from 2025-26 levels by 2030-31, which means the net impact of eVED represents only 2% of total new EV sales in the period.The Government has set out expected impacts from eVED and other Budget measures in the Budget 2025 Policy Costings document at GOV.UK: https://assets.publishing.service.gov.uk/media/692872fd2a37784b16ecf676/Budget_2025-Policy_Costings.pdf

If she will make an estimate of how many businesses in the Fylde constituency will be impacted by the pay per mile tax on electric and hybrid cars.

As announced at Budget 2025, the Government is introducing Electric Vehicle Excise Duty (eVED) from April 2028, a new mileage charge for electric and plug-in hybrid cars, recognising that EVs contribute to congestion and wear and tear on the roads but pay no equivalent to fuel duty. When eVED takes effect in April 2028, eVED rates will be set at 3p per mile for electric vehicles, which is half the equivalent fuel duty rate paid by the average petrol/diesel driver, ensuring that driving an electric vehicle continues to be an attractive choice for consumers. The rate will be set at 1.5p per mile for plug-in hybrids, recognising that they will continue to pay fuel duty on miles driven in petrol mode. An average EV driver driving 8,000 miles per year will pay around £240 per year or £20 per month. As set out by the OBR, the estimated net impact of eVED and other Budget measures, including the ECG and ECS, is 120,000 fewer new EV sales across the forecast period. This is against a baseline which assumes EV sales more than triple from 2025-26 levels by 2030-31, which means the net impact of eVED represents only 2% of total new EV sales in the period.The Government has set out expected impacts from eVED and other Budget measures in the Budget 2025 Policy Costings document at GOV.UK: https://assets.publishing.service.gov.uk/media/692872fd2a37784b16ecf676/Budget_2025-Policy_Costings.pdf