§ 17. Mr. LeighTo ask the Chancellor of the Exchequer if he will make a statement on taxation of married couples. [125842]
§ Dawn PrimaroloMy right hon. Friend the Chancellor has affirmed our commitment to the principle that the tax system should treat people as individuals, each entitled to their own personal allowance.
§ 28. Mr. Bill O'BrienTo ask the Chancellor of the Exchequer what representations he has received on the abolition of the married persons tax allowance; and if he will make a statement. [125854]
§ Dawn PrimaroloThe Chancellor regularly receives representations on all aspects of the tax system.
We have introduced a package of reforms designed to make work pay better and focus resources on families with children. As part of the package, we have increased Child Benefit to record levels of £15 a week for the first child and £10 for subsequent children from April 2000, and it will rise further to £15.50 and £10.35 respectively from April 2001. We are increasing the Working Families Tax Credit by £4.35 a week from this month for children under 16. And in April 2001 we are introducing the Children's Tax Credit which will be worth up to £442, over twice as much as the old married couple's allowance which it replaces. By 2001, personal tax and benefit changes in this and previous Budgets will mean that 1.2 million children will be lifted out of poverty.