§ 9. Judy Mallaber (Amber Valley)What will be the impact on levels of child poverty of the changes to the working families tax credit announced in the Budget. [125833]
§ The Financial Secretary to the Treasury (Mr. Stephen Timms)The Budget increased the rates of income support and working families tax credit by £4.35 for each child under 16. As a result of that and of other changes to the tax and benefits system made during this Parliament, a family with two children on half average earnings will, by the end of the Parliament, be £2,600 a year better off.
§ Judy MallaberDuring last week's national child minding week and the preceding child care week, I spoke to parents and child care providers in my constituency about the value of the child care tax credit linked to the working families tax credit. Does my hon. Friend agree that the working families tax credit and the child care tax credit are among the most important weapons the Government can use against child poverty, because they both boost family incomes and give parents real choices on whether to enter paid employment? Will he tell the House how many parents currently receive the child care tax credit and will he take further steps to promote its take-up?
§ Mr. TimmsMy hon. Friend is quite right. Well over 100,000 people have taken up the child care tax credit, which has been a big success and represents almost three times the level of payment under the earnings disregard in family credit. We are ensuring that every applicant for the working families tax credit knows about the child care tax credit and, as my hon. Friend asked, we shall continue to draw attention to it. We shall also remind families that the Opposition would abolish it if they had the chance.
§ Mr. Ian Bruce (South Dorset)Will the Minister look into a problem that one of my constituents has raised with me? She has received the working families tax credit through the post office since its introduction. She now has to switch to getting the credit from her employer, and is moving from receiving it in advance to receiving it in arrears, which is causing her real financial problems in looking after her children. Also, the money that the post office was earning for paying out the credit has been removed. Will the Minister look into the possibility of people receiving the credit through post offices and not necessarily through employers?
§ Mr. TimmsThe hon. Gentleman acknowledges the importance of the working families tax credit in helping many people to return to work. I am pleased that so many people have taken it up. I am certainly happy to look at any individual case that the hon. Gentleman may wish to draw to my attention.