HC Deb 04 March 1999 vol 326 cc1208-9
10. Mr. Steve Webb (Northavon)

What assessment he has made of the transfer of funds from women to men which will occur as a result of the implementation of the working families tax credit. [72422]

The Paymaster General (Dawn Primarolo)

The Government are clear that there is no compulsory transfer of funds from women to men because of implementation of the working families tax credit.

Mr. Webb

I am disappointed that, even with two weeks' notice, the hon. Lady could not answer my question. Does she accept that £900 million in family credit is paid to women in couples in which men are the principal breadwinner? Does she accept also that the Inland Revenue is assuming that two thirds of employees receiving the tax credit will receive it in their pay packet? Will she therefore confirm that, on that basis, several hundred million pounds will go from women to men as a direct result of Government policy? Does she think that that is in the interests of the children?

Dawn Primarolo

The hon. Gentleman continues to misunderstand the figures. The facts are that 50 per cent. of those who receive family credit, and who will receive working families tax credit, are lone parents; that, in 23 per cent. of couples, women are the main or sole earner; and that a good proportion of the 300,000 people he mentioned already have their money paid into a joint account. As he well knows, we have made it clear that, when there is a dispute about to whom the working families tax credit should be paid, the Inland Revenue will pay directly to the parent with care. The proposition that he has put forward is not true.

Mr. Geraint Davies (Croydon, Central)

Does my hon. Friend agree that the combination of our employment relations legislation, which will give enormous rights to women who work part-time, and the working families tax credit is likely to bring about a significant shift in economic power from men to women?

Dawn Primarolo

I should like to add to that list the benefit to women from the substantial increase in child benefit that we have introduced. The Conservative party froze child benefit. The hon. Member for Northavon (Mr. Webb) has not yet complimented us on that increase.