HC Deb 22 June 2004 vol 422 cc1293-4W
Lynne Jones

To ask the Chancellor of the Exchequer if he will make a statement on the reasons for the methods of payment of back payments for(a) working tax credit and (b) child tax credit. [179774]

Dawn Primarolo

Payment of any tax credits arrears is made direct into bank, building society or Post Office card accounts—or, where that is not possible, by cheque.

This minimises delay and follows the normal method of payment of awards for child tax credit and the child care element of working tax credit. Paying direct into accounts assures a safe, modern and efficient way of paying tax credits that meets people's needs. Where account details have not yet been provided to the Inland Revenue—perhaps while an account is still being set up—payments are initially made by cheque to help minimise any delay.

Currently the non child care elements of working tax credit are paid indirectly by employers alongside wages, wherever possible; although, as my right hon. Friend the Chancellor announced in the Budget, the Government are currently consulting with a view to moving to direct payment.

Mr. Willetts

To ask the Chancellor of the Exchequer how many awards of child tax credit in respect of 2003–04 have(a) been finalised and (b) not yet been finalised. [172898]

Dawn Primarolo

I refer the hon. Member to my reply to my hon. Friend the Member for Birmingham, Northfield (Richard Burden) on 19 November 2003,Official Report, columns 1099–1100W.