HC Deb 11 April 2002 vol 383 c579W
Ms Dari Taylor

To ask the Chancellor of the Exchequer what measures he is taking to increase the take-home pay of families of those in low paid work. [44504]

Dawn Primarolo

Over the last Parliament this Government introduced the following measures to make work pay

  • National Minimum Wage
  • Working Families Tax Credit and Childcare Tax Credit
  • The 10 pence and 22 pence rates of income tax; and
  • Reforms to National Insurance Contributions.

As a result of these measures families with children in the poorest fifth of the population are on average £1,700 a year better off in real terms.

In April 2003 the Government is planning to replace Working Families Tax Credit with the Working Tax Credit and the Child Tax Credit. The Child Tax Credit will provide a seamless stream of support for families, paid direct to the main carer, building on the foundations of universal Child Benefit.