HC Deb 02 April 1998 vol 309 cc616-8W
Mr. Gibb

To ask the Chancellor of the Exchequer in estimating the cost to the Exchequer of the proposed children's tax credit, what was the assumed take-up rate. [36249]

Dawn Primarolo

[holding answer 26 March 1998]: I refer the hon. Member to the answer I gave him and the hon. Member for Havant (Mr. Willetts) on 1 April 1998, Official Report, column 554.

Mr. Lilley

To ask the Chancellor of the Exchequer what estimate he has made of the number of extra people who will be persuaded in each year to 2002 to move from dependency on out of work benefits into jobs by the changes in family credit/working families tax credit announced in the Budget. [36367]

Dawn Primarolo

[holding answer 26 March 1998]: The Government expect that their programme of tax and benefit reform to make work pay will, like their New Deals, help people move off welfare and into work.

Mr. Lilley

To ask the Chancellor of the Exchequer what estimate he has made of the value of working families tax credit which will be paid direct to non-employed mothers. [36391]

Dawn Primarolo

[holding answer 26 March 1998]: No such estimate has been made. Couples will have the choice whether the Working Families Tax Credit is paid to the man or the woman.

Mr. Oaten

To ask the Chancellor of the Exchequer what estimate he has made of the extra costs incurred in the introduction of the disabled person's tax credit. [36410]

Dawn Primarolo

[holding answer 26 March 1998]: Additional annual costs are likely to be £7 million to £10 million by the years 2001/2002. These costs reflect the higher earnings thresholds and lower tapers of the Disabled Person's Tax Credit, as well as the expected increase in recipients.

Mr. Oaten

To ask the Chancellor of the Exchequer if there will be a childcare tax credit within the disabled person's tax credit. [36411]

Dawn Primarolo

[holding answer 26 March 1998]: Yes.

Mr. Oaten

To ask the Chancellor of the Exchequer when the disability working allowance will cease to be paid. [36409]

Dawn Primarolo

[holding answer 26 March 1998]: When it is replaced by the Disabled Person's Tax Credit in October 1999.

Mr. Oaten

To ask the Chancellor of the Exchequer at what level the disabled person's tax credit will be paid. [36414]

Dawn Primarolo

[holding answer 26 March 1998]: The rates at which the Disabled Person's Tax Credit will be paid will be the same as for the Disability Working Allowance (DWA) which it will replace in October 1999. Where it differs is in having higher earnings thresholds of £70 for a single person and £90 for a couple, compared with £57.85 and £77.15 respectively in the DWA; a lower taper of 55 per cent. compared with 70 per cent. for the DWA; and in the childcare credit that replaces the present disregard, which will meet 70 per cent. of childcare costs up to £100 for families with one child and £150 for families with two or more children.

Mr. Oaten

To ask the Chancellor of the Exchequer what estimate he has made of the number of disabled people expected to benefit from the new disabled person's tax credit. [36415]

Dawn Primarolo

[holding answer 26 March 1998]: The Disabled Person's Tax Credit will benefit the 14,000 people currently receiving Disability Working Allowance. In addition, we would expect that the changes to the structure of the provision will cause the caseload to increase by a further 10 per cent. to 15 per cent.

However, we would expect this and the New Deal for disabled people will enable many more sick and disabled people to move into work.

Mr. Oaten

To ask the Chancellor of the Exchequer when he proposes to introduce the disabled person's tax credit. [36413]

Dawn Primarolo

[holding answer 26 March 1998]: October 1999.

Mr. Malcolm Bruce

To ask the Chancellor of the Exchequer what is his estimate of the expenditure on the(a) working families tax credit, (b) childcare tax credit, (c) disabled persons' tax credit, and (d) other newly introduced tax credits in (i) 1998–99, (ii) 1999–2000, (iii) 2000–01, (iv) 2001–02 and (v) 2002–03; and for each of these years, what is the related reduction in other social security expenditure as a consequence of the introduction of the new tax credits. [36451]

Dawn Primarolo

[holding answer 30 March 1998]: Estimates of the net Exchequer cost of the Working Families Tax Credit and the Disabled Person's Tax Credit were given in lines one and five of Table C.l of the Financial Statement and Budget Report (HC620). These estimates take account of the ending of Family Credit. The cost of the childcare tax credit within the WFTC was given in a reply to the hon. Member for Havant (Mr. Willetts) on 1 April 1998, Official Report, column 554.

Mr. Malcolm Bruce

To ask the Chancellor of the Exchequer what is his estimate of the numbers of(a) new recipients of social security benefits and (b) new recipients of tax credits who were not previously claiming family credit in (i) 1998–99, (ii) 1999–2000, (iii) 2000–01 and (iv) 2001–02; and if he will make a statement. [36376]

Dawn Primarolo

[holding answer 30 March 1998]: Estimates of the caseload for the various Social Security benefits will appear in the Department of Social Security's departmental report on 7 April.

The Government estimate that, in its first full year of operation (2000–01), about 400 thousand more families will be entitled to the Working Families Tax Credit that were entitled to Family Credit.

Mr. Malcolm Bruce

To ask the Chancellor of the Exchequer what factors underlie the additional net costs of the working families tax credit compared to family credit for(a) 1999–2000 and (b) 2000–01; and if he will make a statement. [36395]

Dawn Primarolo

[holding answer 30 March 1998]: The relevant factors are the higher withdrawal threshold, the lower taper, the increase in the child tax credits and the increase in the amount of support for childcare provided by the childcare tax credit.