§ 6. Mr. Dafydd Wigley (Caernarfon)If he will review social security regulations to ensure that single mothers 10 and those on low incomes receive the full benefit of the Government's child care policies; and if he will make a statement. [124950]
§ The Secretary of State for Social Security (Mr. Alistair Darling)We need to help more lone parents into work as part of our drive to eradicate child poverty. Measures announced in the Budget include help with funding child care costs for the first year for lone parents in part-time work who work fewer than the 16 hours required to get the working families tax credit.
The national child care strategy, which has delivered a big increase in child care places, will—together with the working families tax credit—help more lone parents and those on low incomes to move into work.
§ Mr. WigleyMay I draw to the attention of the Secretary of State the case of single mothers who had successfully applied for the WFTC and the child care tax credit, only to find that their housing benefit had been reduced by an identical sum, because the local authority treated as income the benefits paid to help with child care? Will he review the situation and, if necessary, write to every local authority to point out that that should not happen and that the full benefit of the tax credits should be available to make child care available to those on low incomes?
§ Mr. DarlingThe right hon. Gentleman will know that the Government have published proposals for housing benefit reform, and we want to examine whether the system provides a disincentive for people entering work. If the right hon. Gentleman is telling me that some local authorities are giving inappropriate advice or are dealing with the administration of housing benefit wrongly, he should draw to my attention which authorities he has in mind and I will look into it.
§ Mrs. Gwyneth Dunwoody (Crewe and Nantwich)Is my right hon. Friend aware that, occasionally, single mothers are clobbered by things that are obviously not deliberate? Is he aware that moving from payment by the Inland Revenue to payment by employers has involved a move from paying in advance to paying in arrears? I can assure my right hon. Friend that most single mothers who have not been in work do not have enough money to pay for child care two months at a time, and that has caused enormous trouble.
§ Mr. DarlingMy hon. Friend will know that we have introduced changes to income support to allow for benefit run-ons to take account of the fact that there is a gap between someone giving up benefit and going into work. She will agree that the working families tax credit has been a great contributor to making clear to people that work pays, and is worth £24 more on average than the previous family credit scheme. It is a matter of great regret that the Conservatives have announced today that they intend to abolish it; that is a £24 tax increase for many of the lowest-paid people in the country.