HC Deb 19 April 2000 vol 348 c578W
Mr. MacShane

To ask the Chancellor of the Exchequer what is the distributional impact(a) of the children's tax credit and Working Families Tax Credit of £32 per week for a second adult and (b) if the CTC were reduced so that the cost to the Exchequer was the same as a £32 credit for a second adult. [118202]

Dawn Primarolo

As given in the reply to my hon. Friend on 9 March 2000,Official Report, column 817W, based on the full year cost of the Working Families Tax Credit (WFTC), the cost of including an additional £32 per week within the credits for all couples already in receipt of WFTC would be about £1.3 billion before taking into account additional take-up and other behavioural effects. If the overall costs to the Exchequer were to remain the same, a cost of this magnitude could absorb the funding for the children's tax credit (CTC).

The £32 per week second adult credit would benefit all couples in receipt of the WFTC equally, whereas the CTC would benefit all families with children under 16 by up to £8.50 per week.