HC Deb 10 December 1998 vol 322 cc300-1W
Mr. Webb

To ask the Chancellor of the Exchequer what the average weekly gains from the introduction of the working families tax credit will be by decile of(a) benefit unit income and (b) household income. [62244]

Dawn Primarolo

[holding answer 3 December 1998]: The table shows estimated average gains arising from the introduction of Working Families Tax Credit for those eligible for the credit. The overall average gain including childcare costs is estimated to be £17.20 per week. Individual decile gains do not include gains arising from the changes to the treatment of childcare costs in Working Families Tax Credit or other behavioural changes arising from the introduction of the credit, as they can not be reliably apportioned across deciles.

Average gain of gainers from introduction of Working Families Tax Credit by decile
£ per week
Declie Benefit unit income Household income
Lowest 1 14.40
2nd 17.40 18.60
3rd 16.10 12.40
4th 12.20 15.20
5th 14.90 12.60
6th 12.00 1
7th 1 1
8th 1 1
9th 1 1
Highest 1 1
1 No gainers or number of gainers too few to calculate reliable estimate of average gain


Deciles are defined in terms of equivalised income on a benefit unit and household income basis using the McClements scale; decile boundaries are higher for households than benefit units.


These estimates have been derived from projections of Family Expenditure Survey data to 1999–2000