Small Charitable Donations and Childcare Payments Bill — House of Commons, 2016-11-15
Topic: Social Welfare
Jane Ellison (Conservative, Centre-right): I beg to move, That the Bill be now read the Third time It is a pleasure to move the Bill’s Third Reading. I thank all right hon. and hon. Members who have taken the time to scrutinise and engage with the Bill so constructively during its passage through this House. It is a short and technical Bill, but it is nevertheless important and it delivers real benefits to our vibrant charity sector and for working families I am very pleased that during its passage through this House, the Bill has received broad cross-party support and provided an opportunity for Members on both sides of the House to highlight and champion the wonderful work that local charities do right across the country. On Second Reading, we heard from the hon. Member for Aberdeen North (Kirsty Blackman) about the volunteers in her constituency shovelling snow to keep the pavements clear in winter. My hon. Friend the Member for Rochford and Southend East (James Duddridge) spoke of the work done by a charity in his constituency to help people living with HIV/AIDS. We heard about the work of animal welfare charities, including Waggy Tails Rescue in Mid Dorset and North Poole, and of course I took the opportunity to mention Battersea Dogs and Cats home in my constituency It is not just charities that will benefit from the reforms to the gift aid small donations scheme. As several hon. Members pointed out, community amateur sports clubs will also be able to access top-up payments sooner, and we heard examples of local sports clubs in Taunton Deane, Chippenham and Congleton that could benefit. The small donations scheme is a good thing for charities. It allows them to claim a gift aid-style top-up payment of 25p in the pound when it is not practical or feasible to obtain a gift aid declaration from a donor The Small Charitable Donations and Childcare Payments Bill will make it even easier for charities to access those top-up payments by removing entirely two of the existing eligibility criteria. The Bill will also simplify and clarify the rules, ensuring that the scheme remains fair and delivers broad parity of treatment for charities structured in different ways. We are reforming the community buildings rules to make the scheme much more generous for local charities that operate out of community buildings. I sought to reassure the shadow Chief Secretary to the Treasury, the hon. Member for Salford and Eccles (Rebecca Long Bailey) about organisations such as scouts and guides by confirming the eligibility in their case. In Committee and again on Report the Opposition Front-Bench team tabled probing amendments on that point and others, and we have had a couple of thorough debates. I reiterate what I said earlier to the House: a scout hut is an eligible community building, so scouts and other uniformed groups will benefit from the changes in the Bill. I hope that all Members here will join me in supporting this enabling reform. We have heard from some Members about their yesteryears in the scouts, and anything that helps scouts to continue with "bob a job" and all their other community fundraising schemes can only be a good thing We are also taking action through this Bill to future-proof the gift aid small donations scheme by extending eligibility to contactless donations, so that charities can continue to benefit from the scheme for many years to come. The message that the Bill sends is clear: the Government want a strong, vibrant and resilient charity sector and we will do all we can to support it through the tax system In addition to celebrating the work of our charities and sports clubs, the Bill’s passage through the House provoked an important wider debate about the threats that the sector faces, and particularly the importance of a robust regulatory regime to protect the reputation of charities from the dishonest minority who seek to abuse charitable status. It is not necessarily a pleasant issue to have to contemplate, but we have had an important debate. It is good that we are continually pushed to think about how we can protect our charities further. The sector is one of our great assets. It is very important, and we need to do all we can to protect it. I have argued consistently that the Bill strikes the right balance between simplifying the gift aid small donations scheme, making it easier for charities to claim top-up payments and protecting the Exchequer from abuse and charities from reputational damage During the Bill’s passage through this House, hon. and right hon. Members have expressed some concern about take-up of the gift aid small donations scheme. As my hon. Friend the Member for Reading East (Mr Wilson), the civil society Minister, told the House on Second Reading, last year 21,300 charities benefited from the small donations scheme, claiming a total of £26 million of Government support. That is a lot of charities, but we accept that it is fewer than forecast. That is why we are simplifying the scheme by removing two of the main eligibility criteria and relaxing the community buildings rules I can also tell the House today that once the new rules take effect, HMRC will undertake a broad communications exercise to promote greater awareness of the gift aid small donations scheme. I have also asked what targeted activity can be undertaken. I encourage charity sector bodies and representative groups to work with the Treasury and HMRC to make the reformed scheme a success. I thank them and the officials concerned for the constructive approach that they take and the work that is done to bring this legislation to the House Let me say a quick word about the tax-free childcare portion of the Bill, which makes a small number of minor and technical, but important, amendments to the tax-free childcare scheme. That fact has not limited the interest shown in the scheme during the debates, and tax-free childcare continues to enjoy cross-party support. A number of speakers have looked forward to being able to use the scheme for their own children, and such a prospect draws ever closer as the scheme is set to commence next year For many, this will be the first time they will be able to access Government support with childcare costs as tax-free childcare will be available to all working parents, regardless of whether they are employed or self-employed. HMRC is about to begin inviting parents to test the new service in trials. As in bringing forward these changes, HMRC will again listen to parents to ensure that it provides the best possible service. The responses made in the Bill, with the minor and technical changes, will help HMRC to ensure that it is quick and easy for working parents to access the support they need with their childcare costs The Small Charitable Donations and Childcare Payments Bill is a short and, it is fair to say, uncontroversial, yet important Bill. Its passage through the House has seen thoughtful and constructive challenge that has allowed us to debate a number of important principles, as well as to praise some of the vital charities that are forces for good in our communities and our wider society. The Bill is therefore a positive Bill. We are making life easier for small charities and for working parents, and I commend it to the House.