Working Families Tax Credit (Hansard, 10 May 1999)

§ Ms Harman
To ask the Chancellor of the Exchequer (1) what effect there will be on their eligibility for childcare tax credit if a parent of(a) one child and (b) two children who is in receipt of childcare tax credit takes unpaid parental leave under the Employment Relations Bill; [83343]
(2) if he will estimate the effect on the income of (a) an employee whose spouse and (b) a lone parent who takes unpaid parental leave under the Employment Relations Bill and whose working families tax credit is in payment and has three months to run; [83345]
(3) if he will estimate the effect on the income (a) on average and (b) by quartiles of a family in receipt of working families tax credit of the main earner taking unpaid parental leave under the Employment Relations Bill; [83341]
(4) what the effect will be on the income of an employee receiving working families tax credit if his or her partner takes unpaid parental leave under the Employment Relations Bill; [83340]
(5) if he will make a statement on the eligibility for the working families tax credit of an employed person who takes unpaid parental leave under the Employment Relations Bill while her employed spouse is the direct recipient of the working families tax credit. [83344]

§ Dawn Primarolo
[holding answer 5 May 1999]: WFTC will be awarded for a 26-week period. Each award is based on a "snapshot" of income immediately preceding the application. Once the award starts it is not affecting by changes to income during the 26-week period. That means that if a parent decides to take unpaid parental leave during that 26-week period the amount of WFTC awarded, including any child-care tax credit, will not change.

§ Ms Harman
To ask the Chancellor of the Exchequer if he will estimate how many of those who did not receive family credit but will receive working families tax credit are dual-earner couples. [83342]

§ Dawn Primarolo
[holding answer 5 May 1999]: It is estimated that in 2000–01, the first full year of the Working Families Tax Credit, about 175,000 dual-earner couples who would not have been in receipt of Family Credit will receive Working Families Tax Credit.