§ Mr. Malcolm BruceTo ask the Chancellor of the Exchequer what is his estimate of the number of people following his Budget who will have(a) increased returns from employment and (b) reduced returns from employment; and if he will make a statement. [36378]
§ Mr. Darling[holding answer 30 March 1998]: The Budget reformed the tax and benefit system in order to make work pay. It included a number of measures specifically designed to increase the return from work, such as:
The abolition of the entry fee in employee NICs which will mean all employees earning more than the Lower Earnings Limit will gain £66 per year.The Working Family Tax Credit which will guarantee every family working full time an income of at least £180 per week.The child care tax credit within WFTC, which will significantly boost in work incomes for many lone parents and two earner couples with children.Those for whom the tax benefit system presents the greatest disincentive to work will, on average, see the largest increase in their return to work.