HC Deb 19 June 2000 vol 352 cc107-8W
Mr. St. Aubyn

To ask the Chancellor of the Exchequer what plans he has for undertaking publicity campaigns ahead of the introduction of integrated child credit and employment credit; and if he will make a statement.[126182]

Dawn Primarolo

The Integrated Child Credit will bring together the different strands of support for children in the Working Families Tax Credit, Income Support/Jobseeker's Allowance and the Children's Tax Credit, to create a seamless system of financial support for children to be paid to the main carer. The adult credit element of WFTC will, along with the Disabled Person's Tax Credit and the Employment Credit component of the New Deal 50 plus, form the foundation of a new employment tax credit which will extend the principle of WFTC to people without children. Paid through the wage packet the employment tax credit will form a single visible instrument, underpinned by the national minimum wage, to make work pay. The new credits will begin to be introduced from 2003.

The Budget paper "Tackling Poverty and Making Work Pay—Tax Credits for the 21st Century" sets out this next stage of reform in more detail.

Every effort will be made to publicise and raise awareness of the new credits.

Mr. St. Aubyn

To ask the Chancellor of the Exchequer if he will estimate the cost implications to public funds of phasing out the working families tax credit and replacing it with integrated child credit and employment credit.[126181]

Dawn Primarolo

The cost of introducing the new tax credits will depend on the detailed design parameters. These have yet to be finalised. However an illustrative example of the cost of extending an employment tax credit to people without children is set out in paragraph 3.24 of the Treasury paper "Tackling poverty and Making Work Pay—Tax Credits for the 21st Century".