§ Mr. Matthew TaylorTo ask the Chancellor of the Exchequer, pursuant to his answer of 19 April 2000,Official Report, column 588W, what estimate he has made of total expenditure on the Employment Tax Credit under the illustrative system outlined in the Treasury paper, Supporting Work Through an Employment Tax Credit, including that part which is currently included in the Working Families Tax Credit; and if he will make a statement. [130647]
§ Dawn PrimaroloThe illustrative employment tax credit outlined in the Treasury paper "Tackling Poverty and Making Work Pay—Tax Credits for the 21st Century" includes an estimate of around £300 million a year as the cost of extending support to people without children. This is based on extending the adult credit in the Working Families Tax Credit under certain specified assumptions. These assumptions, and the modelling involved, apply only to people without children.
As noted in paragraph 3.22 of the paper, details of eligibility and the relative size of the credits for singles and couples do not have to be the same for parents and non-parents. The precise design parameters are under consideration and will not be finalised until nearer the time of the introduction of the new credits.