§ Ms KellyTo ask the Chancellor of the Exchequer what estimate he has made of the additional cost to the Exchequer of providing the Working Families Tax Credit to couples with children if couples split their total earnings in half and the credit was calculated on each half assuming the 55 per cent. taper started cutting in at(a) £45, (b) £50, (c) £60, (d) £70 and (e) £80. [112475]
§ Dawn PrimaroloThe limitations of the data available to model these changes, and the uncertainty over behavioural effects, are such that reliable estimates are not available in the detail required.
The reply I gave to my hon. Friend on 9 February 2000, Official Report, column 214W, provided a rough indication of the high cost involved in splitting the total earnings of couples in the calculation of Working Families Tax Credits. Lowering the income threshold to the levels specified in the question would reduce the cost but precise estimates which take into account the varying behavioural effects could be provided only at disproportionate costs. As a rough guide, halving the income threshold from the current £90 to £45 per week would still more than double the existing cost of Working Families Tax Credits, before allowing for differential behavioural effects.
§ Mr. WebbTo ask the Chancellor of the Exchequer if he will estimate, for each quintile group ranked by equivalised disposable household income, the percentage of gross income accounted for by the Working Families Tax Credit. [112950]
§ Dawn PrimaroloThe information requested is given in the table.
Quintile by equivalised disposable household income Estimated percentage of gross income accounted to by the Working Families Tax Credit Lowest quintile group 3.5 Second 2.2 Third 0.4 Fourth 1— Highest quintile group 1— 1 Sample numbers too small for reliable estimates to be made The figures assume 100 per cent. take-up of entitlement and will tend to overestimate the proportion of Working Families Tax Credit going to the higher quintiles. It is also known that some of the types of household containing families now eligible for Working Families Tax Credit are under-represented in the survey data used to model these estimates.
771W
§ Mr. WillettsTo ask the Chancellor of the Exchequer how many recipients of Working Families Tax Credit are paid at the minimum wage; what proportion this is of total Working Families Tax Credit claimants; how much Working Families Tax Credit is being paid in total to claimants claiming at the minimum wage; and what proportion this is of total Working Families Tax Credit expenditure, all figures for over the latest period for which figures are available and including family credit if applicable; [112756]
(2) how many recipients of the Working Families Tax Credit and the Disabled Person's Tax Credit are paid at rates above the minimum wage; and how many are paid at the minimum wage. [113581]
§ Dawn Primarolo[holding answer 2 March 2000]: The information requested is not available. For each employed claimant, the information captured to the computer system is of gross earnings in each relevant pay period, and a single figure of normal hours worked. These two pieces of information therefore have different coverages, and cannot be used to derive an hourly wage for each case.