§ 1. Dr. Lynne JonesTo ask the Secretary of State for Social Security if he will make a statement on the effectiveness of the child care allowance for those in receipt of family credit.
§ The Secretary of State for Social Security (Mr. peter Lilley)We expect the child care allowance to be very effective in helping low-income families back into work and improving their living standards.
§ Dr. JonesWill the Secretary of State make it clear that that allowance is not a cash benefit and that, although some people will gain provided that they are not paying much more than £1.50 an hour for child care, the poorest—those receiving maximum family credit—and those who use relatives to look after their children will gain nothing? What will the Secretary of State do to help them?
§ Mr. LilleyI will not make those things clear because they are not correct. I am sorry that the hon. Lady greets this welcome reform so sourly, as it has been welcomed by everyone else in the sphere. Far from its helping only a few, we estimate that it will help 150,000 people, of whom 50,000 will be encouraged back to work. The people who are already on maximum family credit are usually those who work the shortest hours, many of whom will be able to increase their hours if they become eligible for child care costs. The allowance will enable them to put their children in care while they are working.