§ Sandra GidleyTo ask the Minister for Women what assessment she has made on the effectiveness of the Child Tax Credit in enabling mothers to return to work; and if she will make a statement. [99046]
§ Dawn PrimaroloI have been asked to reply.
From April, two new tax credits—the Child Tax Credit and Working Tax Credit— will enhance choice for mothers
The Child Tax Credit will provide financial support to families with children, irrespective of the parents' work status. By providing a secure stream of income direct to the main carer, usually the mother, it will assist mothers who choose to return to work.
The Working Tax Credit will support people in low-paid work. In particular it will improve work incentives for second earners compared to WFTC, make it easier for couples to share work in a way that suits them best, 740W and improve the flexibility of child care support. The child care element of the WTC will also be paid to the main carer, usually the mother.
The child care element of WFTC has been a great success. It is estimated that around 85 per cent. of those families receiving WFTC and incurring eligible child care costs, claiming the child-care element of the tax credit.