Working Families Tax Credit

HL Deb 22 June 1998 vol 591 c4WA

Lord Beaumont of Whitley

asked Her Majesty's Government:

What steps they propose to take to help the 200,000 people who, according to their publication The Working Families Tax Credit and work incentives (RF 57372), still face an effective marginal tax rate of 80 per cent. [HL2198]

Lord McIntosh of Haringey

The WFTC will reduce marginal tax rates for over half a million families. The number of families facing marginal deduction rates of 80 per cent. or more will fall from 300,000 to 200,000 and those facing marginal deduction rates of 90 per cent. or more will fall from 130,000 to only 20,000. The Government will continue to keep the number facing high marginal deduction rates under review and work to reduce numbers further where this is practicable.