With this it will be convenient to discuss the following:
Clause stand part.
Clauses 2 to 6 stand part.
New clause 1—Impact of Act on low pay and poverty—
“(1) The provisions of this Act may come into force only if the Government has first laid before the House of Commons and published a report in accordance with this section.
(2) The report must assess the expected impact of the provisions of this Act on—
(a) low pay, and
(b) poverty.
(3) The report must also assess the merits of the provisions of the Act against other ways of reducing low pay and poverty.”
New clause 2—Report on effects on Universal Credit claimants—
“(1) The Treasury must prepare a report on the forecast effects of the provisions of this Act on—
(a) the net incomes of, and
(b) the Universal Credit payments made to
in-work Universal Credit claimants who pay National Insurance.
(2) The report must forecast the estimated change in expenditure on Universal Credit as a result of the provisions of this Act.
(3) The Chancellor of the Exchequer must lay the report before Parliament before the end of the period of 30 days beginning with the day on which this Act is passed.”
This new clause would require the Treasury to publish forecasts of the effects of changes to National Insurance thresholds on Universal Credit recipients and total Universal Credit expenditure.
New clause 3—Report on effects of provisions of Act—
“(1) The Treasury must within six months of Royal Assent lay a report before Parliament on the impact of the provisions of this Act on disposable incomes.
(2) The report made under subsection (1) must also include an assessment of the effect on disposable incomes of the provisions of the Act if combined with a reduction in National Insurance rates of 1.25%.”
This new clause would require the publication of a report within 6 months of the Act receiving Royal Assent assessing the effect on disposable incomes.
New clause 4—Report on effects of provisions of Act (No. 2)—
“(1) The Treasury must within six months of Royal Assent lay a report before Parliament considering the impact of the provisions of this Act on the levels of taxation of—
(a) earned and
(b) unearned income.
(2) The report made under subsection (1) must also include an assessment of the effect on the levels of taxation of—
(a) earned and
(b) unearned income of the provisions of the Act if combined with a reduction in the basic rate of income tax from 20% to 19%.”
This new clause would require the publication of a report within 6 months of the Act receiving Royal Assent assessing the effect on earned and unearned income.