HC Deb 19 April 2000 vol 348 cc587-8W
Mr. Matthew Taylor

To ask the Chancellor of the Exchequer what method was used in calculating the cost of an employment tax credit given in paragraph 3.24 of the Treasury paper, "Supporting Work Through an Employment Tax Credit"; how much he estimates will be paid through the adult allowance portion of the working families tax credit in financial year 2000–01; and if he will make a statement. [119053]

Dawn Primarolo

[holding answer 17 April 2000]: Detailed design of the parameters for an employment tax credit for people without children will be decided in due course prior to its introduction from 2003. The costing in paragraph 3.24 is based on an illustrative model which extends the adult credit in the Working Families Tax Credit to single people and couples with someone over the age of 25, working 30 or more hours, and with a higher rate for couples than for singles. It was estimated using household and income data from the Family Expenditure Survey and the Family Resources Survey.

It is not possible to provide a breakdown of expenditure in the Working Families Tax Credit by type of credit. The amount of award payable is reduced for families whose incomes are above the threshold, and this reduction is applied to the total value of all credits taken together.

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