§ 13. Mrs. Anne Campbell (Cambridge)What representations he has received about the child tax credit. [92745]
§ The Paymaster General (Dawn Primarolo)Since first announcing the development of the child tax credit and working tax credit in Budget 2000, we have received a large number of representations on all aspects of the system from a wide range of interest groups. We are grateful for the contributions to that process, which assisted in the design of the new tax credits. The Inland Revenue and the Treasury continue to consult informally on a range of tax credit issues, including the child tax credit.
§ Mrs. CampbellWill my right hon. Friend confirm that the new tax credit will mean a welcome and generous increase in family finances? Will she also confirm that it will be paid to the main carer, who is usually the woman, and that that may lead to quite a sharp reduction in some men's pay packets?
§ Dawn PrimaroloI can confirm that, for recipients of working families tax credit who will also receive the child tax credit, the average increase could be of as much as £12 a week. I can also confirm that the payment will go directly to the main carer—normally the mother—and that that will result in a transfer of moneys from the father to the mother in April of this year. That is in line with the views of most men. According to a recent poll, 64 per cent. of men said that they believed that support should go to the mother, and 70 per cent. believed that the mother was most likely to spend the money on the children. When the transfer occurs in April and mothers receive the money for the first time, I hope that all hon. Members will remember those poll figures, and celebrate the importance of spending money on children.
§ Mr. James Clappison (Hertsmere)The Paymaster General and the Government constantly rename and reconfigure the tax credits, but will they bear in mind the 433 importance of take-up? For example, what has been the take up, proportionately, of the baby tax credit introduced in April last year?
§ Dawn PrimaroloI am glad that the hon. Gentleman will support the Government in ensuring that his constituents receive all the money to which they are entitled. I am grateful to hear that he is so concerned to ensure that that take-up takes place. I can confirm that the current tax credits have received a higher take-up than any of the family credit obligations under the previous Conservative Government. Some 800,000 people receive family credit, and 1.3 million people already receive working families tax credit. Millions more will receive the tax credit. We must ensure that they all enjoy the support of the House, and of the hon. Gentleman.