HC Deb 13 May 1999 vol 331 cc207-8W
33. Mr. Dobbin

To ask the Chancellor of the Exchequer if he will make a statement on his measures to increase the financial incentive to work. [83221]

Dawn Primarolo

The Government are determined to make work pay through reforms to the tax and benefit system aimed at alleviating both the poverty and unemployment traps. From April this year a new lop rate of income tax was introduced, this will halve the tax bill for 1.5 million low-paid workers. It will be complemented by a series of reforms to National Insurance Contributions which will take 900,000 low-paid workers out of NICs altogether and reduce burdens on employers and employees alike. The Working families Tax credit Will be introduced in October 1999. It will increase the return to work for at least 1.5 million people. In combination with the National Minimum Wage and other tax and benefit reforms the WFTC will provide a minimum income guarantee for families with someone in full-time work at the national minimum wage of £200 a week.