HC Deb 31 July 1998 vol 317 cc650-2W
Mr. Webb

To ask the Chancellor of the Exchequer what representations he has received from the Inland Revenue on the feasibility of delivering the working families tax credit via the PAYE system; and if he will place a copy of any such representations in the Library. [50252]

Dawn Primarolo

[holding answer 13 July 1998]: The advice of officials to Ministers is confidential, but I can refer the hon. Member to the reply I gave to my hon. Friend the Member for Hove (Mr. Caplin) on 9 July 1998, Official Report, column 576, on the question of how the WFTC will be delivered to employees.

Mr. Duncan Smith

To ask the Chancellor of the Exchequer what date he has set for achieving the target of an £180 per week income for all working families with a full-time worker under the working families tax credit scheme. [53115]

Dawn Primarolo

[holding answer 28 July 1998]: The WFTC will guarantee an income of £180 for families with a full time worker from when it is introduced in October 1999.

Mr. Rendel

To ask the Chancellor of the Exchequer what estimates he has made of the number of people expected to be entitled to, and to claim, the working families tax credit in Scotland. [53172]

Dawn Primarolo

[holding answer 28 July 1998]: It is estimated that in 2000–01, the first full year of WFTC, around 130,000 families in Scotland will be in receipt of WFTC and we intend to ensure that as many families as are entitled receive the tax credit.

Mr. Rendel

To ask the Chancellor of the Exchequer which computer system will be used to collect(a) tax and national insurance information and (b) information required under the working families tax credit; and which company/consortium has been awarded the contract to oversee the computer system. [52747]

Dawn Primarolo

[holding answer 28 July 1998]: The current, separate, IT systems for collecting tax and NIC will continue to be used and the Working Family Tax Credit will build on existing Family Credit IT systems. The current IT support for Family Credit will transfer to the Inland Revenue to enable them to successfully deliver the Working Family Tax Credit. There has been no new award of contracts resulting from Working Family Tax Credits or the proposed merger of The Contributions Agency.

Mr. Rendel

To ask the Chancellor of the Exchequer what systems have been set up to allow for direct payments from the Inland Revenue of the working families tax credit where the credit is not made through the pay packet. [52803]

Dawn Primarolo

I regret that it has not been possible to provide a substantive answer before the summer recess. I shall write to the hon. Member shortly and place a copy of the letter in the Library.

Mr. Bendel

To ask the Chancellor of the Exchequer how many people are expected to be eligible for, and to claim, the child care credit within the working families tax credit; and if his Department has estimated the costs involved in Scotland. [53173]

Dawn Primarolo

[holding answer 28 July 1998]: I regret that it has not been possible to provide a substantive answer before the summer recess. I shall write to the hon. Member shortly and place a copy of the letter in the Library.

£ per week
Single earner married couple (1 child aged 4)
Gross Income 150 200 250 300 350 400
Net Income (after taxes and benefits) 245.73 260.99 276.07 291.14 306.22 321.29
Equivalised Net Income 208.25 221.18 233.96 246.73 259.51 272.28

The figures include the effect of Budget measures taking effect in 1999–2000 (abolishing the employee NICs entry fee, MCA at 10 per cent. and £2.50 additional child benefit for the first child, although at 1998–99 levels of tax and benefits.

The data assume that the earner in the household is working over 30 hours a week for Working Family Tax Credit purposes; that earnings are from employment; and that there are no other sources of income.

The Standard McClements scales have been used to determine equivalised income. This is the same process that is used in the DSS's Households Below Average Income publication.At some levels of earnings this family may also be entitled to housing benefit and council tax benefit. However, as this will depend upon the composition of the housing costs (between mortgage payments, council tax, and rent), housing benefit and council tax benefit have been left out of these figures.

Mr. Gibb

To ask the Chancellor of the Exchequer what is the basis for his assumption that 20 per cent. of the working families tax credit is to be accounted for as tax forgone. [53720]

Dawn Primarolo

[holding answer 30 July 1998]: The assumption that 20 per cent. of the Working Families Tax Credit will be accounted for as tax forgone is based on an estimate of the proportion of WFTC payments which are paid up to an individual's gross income tax liability. WFTC payments paid over an individual's gross income tax liability will be accounted for as expenditure in the national accounts, under current conventions.

Mr. Fallon

To ask the Chancellor of the Exchequer if the Treasury has reached agreement with the Office for National Statistics on the treatment of the working families tax credit for the purposes of the national accounts. [54121]

Mr. Byers

Decisions on classification for the national accounts are for Office for National Statistics alone following international standards.

Mr. MacShane

To ask the Chancellor of the Exchequer, pursuant to his answer of 16 June 1998,Official Report, column 133–34, if he will give the corresponding figures for a single earner married couple with one child aged four years. [53692]

Dawn Primarolo

The table shows the net income (after income tax, including WFTC, NICs and child benefit), and equivalised net income, of a single earner married couple with 1 child aged 4, at different levels of gross income, with an additional £48.80 of basic WFTC.