HC Deb 12 June 1997 vol 295 cc1277-8
15. Dr. Godman

To ask the Chancellor of the Exchequer what plans he has to raise the annual sum of money an employed person may donate to charities by way of the give-as-you-earn scheme; and what has been the cost of the scheme to public funds since its inception. [1600]

Dawn Primarolo

The payroll giving scheme has cost more than £30 million. The limit for donations under the scheme is a matter for the Chancellor in his Budget.

Dr. Godman

The upper limit of £1,200 per annum was set some time ago. Does my hon. Friend agree that it should be raised to, say, £2,000 per annum, as donors and charities would welcome such an increase and the latter would be able to plan their projects systematically? Incidentally, has my hon. Friend any idea how many hon. Members pay the maximum £1,200 per annum?

Dawn Primarolo

I do not have any idea how many hon. Members are contributing the maximum. There are more than 10 million people in pay-as-you-earn schemes who could give to charities. It is up to the charities to ensure that those people are donating. Any increase in the allowance is a matter for my right hon. Friend the Chancellor in his Budget.

Mr. Ian Taylor

Does the Minister share my concern about the funding of charities? If so, will she urge the Chancellor of the Exchequer not to change advance corporation tax? Would she like to explain why it would have a negative impact on charities, and undertake to talk to the charities about any such proposals?

Dawn Primarolo

I am sure that my right hon. Friend the Chancellor heard that and will take it as a Budget representation. All hon. Members will want to ensure that charities are properly dealt with in the tax system.