§ Dr. GodmanTo ask the Chancellor of the Exchequer what has been the cost to the Treasury of the Give as You Earn scheme since its inception; and if he will make a statement. [98000]
§ Miss Melanie JohnsonThe cost of the tax relief under the Payroll Giving scheme since it was introduced in 1986 is £44 million, of which £7 million is the provisional cost in 1998–99. Annual costs are published in Inland Revenue Statistics.
Take-up of Payroll Giving has improved in recent years, with the annual level of donations increasing threefold in the 1990s (1990–91 to 1998–99). Donations in 1998–99 were up 11 per cent. on the previous year. Research undertaken by the Inland Revenue for the Government's review of charity taxation suggests that there is considerable potential to increase take-up further.
As a result of "Getting Britain Giving" measures announced by the Chancellor of the Exchequer in his Pre Budget Report, the Government is abolishing the £1,200 maximum limit for donations under Payroll Giving. In future, employees will be able to give as much as they like through their pay packet. In addition, charities and 780W employers will be joining with the Inland Revenue in a campaign next summer to promote the scheme. The campaign will be backed by a time-limited supplement on Payroll Giving donations payable to charities for three years from April 2000, out of public expenditure.