§ Mr. ChaytorTo ask the Chancellor of the Exchequer what assessment he has made of the effectiveness of his tax and benefits reforms in making work pay. [106862]
§ Dawn PrimaroloThe Government are committed to creating employment opportunities for those who want to work while providing security for those who cannot.
A key element of this strategy is to ensure that work pays by creating the right incentives, through the tax and benefit system, at every level of the labour market.
The Working Families Tax Credit, combined with the reforms to income tax and National Insurance Contributions, extends employment opportunity for all and increases the rewards from work.
Combined with the National Minimum Wage and other tax and benefit reforms the WFTC will guarantee a minimum income of £200 a week for a family with someone in full-time employment—£80 a week more than a couple would receive on Income Support;The Working Families Tax Credit helps make work pay for 1.4 million low and middle income working families with children who gain, on average, £24 a week more than under Family Credit;The 10p rate of income tax halves the marginal tax rate for 2.3 million people of which 1.7 million are low paid;Reforms to National Insurance Contributions will remove 1 million low paid people from national insurance.