HC Deb 06 December 2001 vol 376 cc453-4
5. Mr. Stephen McCabe (Birmingham, Hall Green)

If he will make a statement on how integrated tax credits will support families. [18686]

The Paymaster General(Dawn Primarolo)

In 2003, the Government will be introducing a new credit for families with children, the child tax credit. It will provide a seamless stream of support for families, integrating the income-related elements of support for children, paid directly to the main carer. The child tax credit will be paid to families with children, whether the adults in the family are in work or not. It will build on the foundation of child benefit.

Mr. McCabe

Does my hon. Friend agree that integrated tax credits represent the single greatest advance for ordinary people since the introduction of family allowance itself? Is this not the essence of Labour in action—a Government who believe that those who can work should work, that their children should enjoy the fruits of their honest toil, and that all children have the right to grow up free from the scourge of poverty?

Are not those who seek to frustrate such measures committing a direct assault on the interests of ordinary people and their children?

Dawn Primarolo

My hon. Friend is right and I am sure that he would be surprised if I did not agree with him. The Opposition presided over a massive growth in child poverty and unemployment, and the key aspects of the Government's policy in tackling poverty are, first, to deal with low pay; secondly, to deal with the problem of workless households; and thirdly, investment in education and health, which will tackle all the elements of poverty in our society and ensure that children and their families are lifted out of that poverty.

Mr. David Laws (Yeovil)

Does the Minister agree with Andrew Dilnott of the Institute for Fiscal Studies that it is remarkable that the Treasury has yet to publish estimates of its two new tax credits, even though in a previous precedent it did publish estimates of the cost of the new tax credits? Why has it failed to do so in that case?

Dawn Primarolo

The hon. Gentleman will not be surprised to hear that I do not agree with the gentleman he mentioned. The Tax Credits Bill, which will be debated by the House on Monday, will put in place the framework for a clear, simple, transparent method of delivering income to families, especially those in greatest need. As my right hon. Friend the Chancellor has said, the question of rates and tapers will be a subject for the Budget statement.

Jane Griffiths (Reading, East)

Is my hon. Friend aware that in areas such as my constituency, where the cost of living is high and unemployment is low, families who struggle on low incomes have a harder time of it than those in many other parts of the country? Does she agree that the seamless and common framework of assessment for the new credit will remove the stigma attached to receiving benefits that does exist, especially in such areas as Reading, East?

Dawn Primarolo

The child credit will be paid to families with children regardless of whether the adult is in or out of work, thus removing the stigma. It will also ensure that those families have one point of application for those payments. It will be precisely calculated to ensure that those with the lowest incomes will get the maximum benefit. It is strange that on such an important change to the system of support for families, especially those with children, the official Opposition apparently do not have any views.

John Robertson (Glasgow, Anniesland)

My hon. Friend will be aware that my constituents welcome the child tax credit, but I am concerned by the shadow Chancellor's view that £50 billion could be wiped off—

Mr. Speaker

Order. The Minister will not be able to answer that point.

Dawn Primarolo

I am sure that the House has noted that in the cuts that the shadow Chancellor wishes to see, both in the public sector and in benefits—

Mr. Speaker

Order.