UK Parliament / Open data

Small Charitable Donations and Childcare Payments Bill

Yes, the hon. Lady is exactly right. Members in all parts of the Committee raised many pertinent, practical examples of charities that we would want to be ready beneficiaries of the scheme, but that would be prohibited from taking part in it.

At the time, perhaps because this was a first move in this direction, the Minister took a narrow and highly precautionary approach, but smaller charities have not claimed the amount of small donations relief under the 2012 Act that the then Chancellor said they would; when he announced the scheme, he said that it would be £100 million. The indications to date are £25 million a year with an uplift of perhaps £15 million, going by what the Minister has said about the Bill, but we are still talking about something well short of what was promised to the charitable sector when the concept was introduced. Our challenge is how to get closer to the £100 million. We have to look at the things that are standing in the way. I acknowledge that the Government, in the consultation and in the Bill, have moved to address some of the difficulties on community buildings and the question of connected charities. The matching requirement, however, is still there, and I wonder whether the Minister can tell us whether or not there are examples of fraud in the gift aid small donations scheme in the past three years. Are there any indications of whether matching requirements would have prevented fraud, or simply prevented access to the scheme?

We want to know why the ministerial team are content with arriving at an amount that is only half the amount of support originally intended—in fact, it is less than half. I therefore hope that Ministers are prepared to continue to listen to hon. Members who serve on the Bill Committee and to the charitable sector so that we can improve the scheme and make it much more effective for all the causes and examples that hon. Members have discussed, including the question of clubs and so on.

As well as amending the Small Charitable Donations Act 2012 the Bill amends the Childcare Payments Act 2014. In an intervention I said that the Minister rightly presented the childcare payments scheme under the Bill—with the original Act as the source—as applying to each child. However, the Government are inconsistent, because the childcare element of universal credit is

restricted to two children. Working tax credit rules apply to two children, but childcare payments under the 2014 Act are not restricted to two children. What is the reason for the Government’s cognitive dissonance? Why are there different rules on support for different families? The Minister explained how the provisions in the Bill ensure that changes can be met more responsibly by the system, but will Ministers consider the difference in experience and bureaucratic contact for parents accessing childcare payments under the Bill and the original Act and for parents who apply for the childcare element of universal credit? Under the childcare payments scheme, it is a bankable allowance, but it is not a bankable allowance for people on universal credit. They have to spend the money first, then claim it back within a short time. There is an unfair difference in treatment. Some parents are treated more generously and supportively in the way in which the system relates to them and engages with them than others, which is wrong. As legislators, we should try to ensure a more consistent approach to the principle of childcare in all the important and positive forms that it takes.

That is not to say that the childcare payments provided for are not positive and practical; I just wish that the universal credit childcare element could be made more comparable and, similarly, that if the Government see fit not to visit a two-child rule on the childcare payments system, they will abandon the idea of having such a rule for working family tax credit as well.

5.25 pm

About this proceeding contribution

Reference

615 cc236-7 

Session

2016-17

Chamber / Committee

House of Commons chamber
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