§ Mr. Willetts
To ask the Chancellor of the Exchequer what assessment he had made of the effect of paying a benefit directly through the pay-packet as a tax credit on incentives and behaviour. 
§ Dawn Primarolo
[holding answer 8 July 1999]: No benefits are currently paid as tax credits. The Government have, however, already announced that the new Working Families Tax Credit and Disabled Persons Tax Credit will be paid through the pay packet from April 2000. This will demonstrate the link between reward and work, encourage take-up, and improve work incentives.