HC Deb 09 March 2000 vol 345 cc813-4W
22. Mr. Michael Jabez Foster

To ask the Chancellor of the Exchequer what measures he has taken to increase the take-home pay of those in low-paid work. [112238]

32. Mr. Reed

To ask the Chancellor of the Exchequer what measures he is taking to increase the level of take-home pay for low-paid workers in the east midlands. [112250]

Dawn Primarolo

The Government are committed to creating employment opportunities for all.

A key element of this strategy is the commitment to making work pay, and creating a fairer system for all low-paid workers. The key measures are: The National Minimum Wage, which was introduced in April 1999 and has boosted the hourly wage of over 1.5 million low-paid workers. The adult rate will be increased from £3.60 per hour to £3.70 per hour from October 2000, while the youth rate will be increased from £3.00 per hour to £3.20 per hour from June 2000; The 10p rate of income tax from April 1999, which has halved the marginal tax rate for 2.3 million people, of whom 1.7 million are low-paid. Those on the lowest taxable incomes have gained up to £2.88 a week, compared to £1.15 a week for basic rate taxpayers; Reforms to National Insurance Contributions which will remove around one million low-paid people from national insurance, while protecting their benefit entitlement; The cut in the basic rate to 22p, from April 2000; For families with children, the Working Families Tax Credit, which guarantees 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.