Seventeenth Report of Session

Transcription

1 House of Lords House of Commons Joint Committee on Statutory Instruments Seventeenth Report of Session Drawing special attention to: Childcare Payments Act 2014 (Commencement No. 2) Regulations 2016 (S.I. 2016/1083) Ordered by The House of Lords to be printed 14 December 2016 Ordered by The House of Commons to be printed 14 December 2016 HL Paper 87 HC 93-xvii Published on 16 December 2016 by authority of the House of Lords and the House of Commons

2 Joint Committee on Statutory Instruments Current membership House of Lords Lord Lexden (Conservative) Baroness Meacher (Crossbench) Lord Morris of Handsworth (Labour) Lord Rowe-Beddoe (Crossbench) Baroness Scott of Needham Market (Liberal Democrat) Lord Rowlands (Labour) Lord Sherbourne of Didsbury (Conservative) House of Commons Derek Twigg MP (Labour, Halton) (Chair) Vicky Foxcroft MP (Labour, Lewisham, Deptford) Stephen Hammond MP (Conservative, Wimbledon) Mr Ian Liddell-Grainger MP (Conservative, Bridgwater and West Somerset) Victoria Prentis MP (Conservative, Banbury) Powers The full constitution and powers of the Committee are set out in House of Commons Standing Order No. 151 and House of Lords Standing Order No. 73, available on the Internet via Remit The Joint Committee on Statutory Instruments (JCSI) is appointed to consider statutory instruments made in exercise of powers granted by Act of Parliament. Instruments not laid before Parliament are included within the Committee s remit; but local instruments and instruments made by devolved administrations are not considered by JCSI unless they are required to be laid before Parliament. The role of the JCSI, whose membership is drawn from both Houses of Parliament, is to assess the technical qualities of each instrument that falls within its remit and to decide whether to draw the special attention of each House to any instrument on one or more of the following grounds: i ii iii iv that it imposes, or sets the amount of, a charge on public revenue or that it requires payment for a licence, consent or service to be made to the Exchequer, a government department or a public or local authority, or sets the amount of the payment; that its parent legislation says that it cannot be challenged in the courts; that it appears to have retrospective effect without the express authority of the parent legislation; that there appears to have been unjustifiable delay in publishing it or laying it before Parliament;

3 v vi vii that there appears to have been unjustifiable delay in sending a notification under the proviso to section 4(1) of the Statutory Instruments Act 1946, where the instrument has come into force before it has been laid; that there appears to be doubt about whether there is power to make it or that it appears to make an unusual or unexpected use of the power to make; that its form or meaning needs to be explained; viii that its drafting appears to be defective; ix any other ground which does not go to its merits or the policy behind it. The Committee usually meets weekly when Parliament is sitting. Publications The reports of the Committee are published by Order of both Houses. All publications of the Committee are on the Internet at Committee staff The current staff of the Committee are Mike Winter (Commons Clerk), Jane White (Lords Clerk) and Liz Booth (Committee Assistant). Advisory Counsel: Daniel Greenberg, Peter Brooksbank, Philip Davies and Peter Davis (Commons); Nicholas Beach and John Crane (Lords). Contacts All correspondence should be addressed to the Clerk of the Joint Committee on Statutory Instruments, House of Commons, London SW1A OAA. The telephone number for general inquiries is: ; the Committee s address is: jcsi@parliament.uk.

4 Seventeenth Report of Session Contents Instruments reported 2 1 S.I. 2016/1083: Reported for requiring elucidation 2 Childcare Payments Act 2014 (Commencement No. 2) Regulations Instruments not reported 3 Annex 3 Appendix 5 S.I. 2016/ Childcare Payments Act 2014 (Commencement No. 2) Regulations

5 2 Seventeenth Report of Session Instruments reported At its meeting on 14 December 2016 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 ground for reporting it is given below. The relevant Departmental memorandum is published as an appendix to this report. 1 S.I. 2016/1083: Reported for requiring elucidation Childcare Payments Act 2014 (Commencement No. 2) Regulations The Committee draws the special attention of both Houses to these Regulations on the ground that they require elucidation. 1.2 These Regulations brought into force on 14 November certain provisions of the Childcare Payments Act 2014 for the purposes of the trial. The trial is defined as a test of all the systems required to deliver the childcare payments scheme (as defined), which the Treasury considers necessary and which will run for six months from 14 November 2016 to 15 May 2017 and will involve a range of parents and others responsible for children. 1.3 The Committee was concerned that the Regulations contained no details of the trial, either in the operative text or in the explanatory note, such as would enable the reader to ascertain the extent to which the provisions in question were to be commenced. 1.4 In a memorandum printed as an Appendix, the HM Revenue and Customs provides a comprehensive description of the trial, and sets out a written statement made to the House of Commons on 15 September 2016 by the Chief Secretary to the Treasury. The Committee finds this information helpful, but considers that something briefer (perhaps merely a reference to the written statement) could usefully have been included in the explanatory note to the Regulations. The Committee accordingly reports these Regulations for requiring the elucidation now provided by the Department.

6 Seventeenth Report of Session Instruments not reported At its meeting on 14 December 2016 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 Draft S.I. Bank of England and Financial Services (Consequential Amendments) Regulations 2017 Draft S.I. Important Public Services (Border Security) Regulations 2017 Draft S.I. Important Public Services (Education) Regulations 2017 Draft S.I. Important Public Services (Fire) Regulations 2017 Draft S.I. Important Public Services (Health) Regulations 2017 Draft S.I. Important Public Services (Transport) Regulations 2017 Draft S.I. Trade Union Act 2016 (Political Funds) (Transition Period) Regulations 2017 Draft. S.I. Terrorism Act 2000 (Proscribed Organisations) (Amendment) (No. 3) Order 2016 Instruments subject to annulment S.I. 2016/1088 Architects Act 1997 (Amendment) Order 2016 S.I. 2016/1093 Lifts Regulations 2016 S.I. 2016/1094 European Union (Recognition of Professional Qualifications) (Amendment) Regulations 2016 S.I. 2016/1101 Electrical Equipment (Safety) Regulations 2016 S.I. 2016/1105 Pressure Equipment (Safety) Regulations 2016 S.I. 2016/1107 Equipment and Protective Systems Intended for Use in Potentially Explosive Atmospheres Regulations 2016 S.I. 2016/1112 European Communities (Designation) (No. 2) Order 2016 S.I. 2016/1113 Transfer of Functions (Chequers and Dorneywood Estates) Order 2016 S.I. 2016/1124 S.I. 2016/1125 Misuse of Drugs (Designation) (Amendment) (England, Wales and Scotland) Order 2016 Misuse of Drugs (Amendment) (England, Wales and Scotland) Regulations 2016

7 4 Seventeenth Report of Session S.I. 2016/1147 S.I. 2016/1157 Street Works (Qualifications of Operatives and Supervisors) (England) Regulations 2016 Code of Practice (English Language Requirements for Public Sector Workers) Regulations 2016 S.I. 2016/1186 Lifts (Amendment) Regulations 2016 S.I. 2016/1187 Proscribed Organisations (Name Change) Order 2016 Draft Instrument subject to negative procedure Draft S.I. Hertfordshire (Electoral Changes) (Amendment) Order 2017 Instruments not subject to Parliamentary proceedings laid before Parliament S.I. 2016/1119 North Korea and Iran (United Nations Sanctions) (Amendment) Order 2016 S.I. 2016/1120 Iran (Sanctions) (Overseas Territories) (Amendment) (No. 2) Order 2016 Instrument not subject to Parliamentary proceedings not laid before Parliament S.I. 2016/1133 Finance Act 2016, Sections 184 to 188 and Schedule 25 (Commencement) Regulations 2016

8 Seventeenth Report of Session Appendix S.I. 2016/1083 Childcare Payments Act 2014 (Commencement No. 2) Regulations 2016 In its letter to HM Treasury of 30 November 2016, the Joint Committee requested a memorandum on the following points: Explain the details of the trial referred to in regulation 1(2), and where they are to be found. In particular, to whom will the commenced provisions apply and, if the trial is to operate only in specific geographical areas, what are those areas? 1. The Childcare Payments Act introduces the new Tax Free Childcare scheme and is one of HMRC s new digital-by-default schemes, with telephony support for families who cannot access the digital service. The trial of Tax Free Childcare is designed to extensively test the new Tax Free Childcare service before it is available in early There was a ministerial statement made in the House of Commons by David Gauke MP (The Chief Secretary to the Treasury) on 15th September 2016 ref HCWS160 which said; Ahead of the introduction of Tax Free Childcare in early 2017 and the 30 hours extended entitlement for three and four year olds in September 2017, HM Revenue and Customs (HMRC) will trial a new, digital, joint childcare service later this year. The trial will involve around 1500 parents, including some who are eligible for both schemes. It will enable HMRC to extensively test the system and ensure it provides a smooth experience and quality service for parents. Tax-Free Childcare and the extended free entitlement are a key part of the Government s overall childcare offer which will provide over 6 billion per annum to working families and those on low incomes by the end of this Parliament. The Government announced in November 2015 that parents will be able to apply online for both Tax Free Childcare and the extended free entitlement through a new joint childcare service being developed by HMRC, with their delivery partner National Savings & Investments (NS&I). The joint childcare service will provide a simple and straightforward way for working parents to access both schemes, avoiding the need to provide the same information twice, and saving them valuable time. In March 2016, the Government announced that Tax Free Childcare will be introduced and gradually rolled out during The service will be made available to all eligible families by the end of that year.

9 6 Seventeenth Report of Session A similar but less detailed statement was also made in the House of Lords on the same day by Lord O Neill of Gatley ref HLWS159. During 2016 HMRC staff also went around the UK to publicise the trial by presentations to childcare providers and the National Day Nurseries Association. 2. This digital service is being developed as an online, joint application system which will be used by persons wishing to apply for Tax-Free Childcare and for the additional 30 hours free childcare which the Department for Education (DfE) is currently legislating for. The Childcare Act 2016 received royal assent on 16th March 2016 and the Draft Childcare (Early Years Provision Free of Charge) (Extended Entitlement) Regulations 2016 were debated in the House of Commons on 5th December and will be debated in the House of Lords on 12th December In order to extensively test the new IT system and ensure it provides a smooth customer experience and quality service, the trial is providing for the gradual participation of persons applying under the scheme, increasing in number as the trial progresses. The trial is being used to address how the system will operate in relation to persons in a range of different situations, before the system is rolled out to more people from early The commenced provisions will apply to those persons who have been recruited specifically for the purpose of participating in the trial. The commenced provisions will apply to those persons who have been recruited specifically for the purpose of participating in the trial. 5. The trial is, in general, not restricted to a geographical area. Where the parents are testing the joint application for Tax-Free Childcare and 30 hours free childcare they are situated in the areas that DfE have identified as trial early implementer areas. These areas are Northumberland, Portsmouth, Hertfordshire and York. There are 4 other early implementer areas, Swindon, Staffordshire, Wigan and the London Borough of Newham, which do not form part of the trial. The areas selected for the trial represent a broad spectrum of cases and will provide a thorough test of the system. 6. The methods used to recruit participants in this trial have been fair and open. A recruitment agent has been appointed, under a competitive tender process, to undertake the recruitment on behalf of HMRC. The agent recruited using criteria that HMRC set in order to ensure fair and open selection e.g. a range of different family circumstances, a range of persons in different types of employment, persons in different income brackets, persons using existing types of government childcare support, persons with varying digital abilities, including those with no ability, persons with different residence statuses and those using various types of childcare provider. Approximately 100,000 persons were invited to participate in the trial and any persons asking to participate have been invited to do so. At this time, around 4,500 person have registered an interest in the trial and we expect to use approximately 1,500 of them. Using these criteria people were recruited using the following two methods: (a) Bulk recruitment people were invited to complete an online questionnaire (with the option to call if needed). We invited people from the following data sources:

10 Seventeenth Report of Session Ȥ Ȥ Ȥ Ȥ The Tax Free Childcare parent survey (this used random direct telephone contact so households throughout the UK had a chance of participating in this survey). A consumer database A survey of a representative sample of the population Child Benefit records (b) Qualified recruitment we have used other more tailored techniques to find hard-to-reach groups e.g. digitally excluded and parents of disabled children over 12. This will ensure we test the system with people from a range of different circumstances. 7. The purpose of the trial is to ensure that the joint childcare service tests live running systems and processes with parents covering a range of characteristics to identify and resolve technical and process issues before national rollout from early HM Revenue and Customs 6 December 2016