§ 26. Mr. HeppellTo ask the Chancellor of the Exchequer what measures he is taking to increase the take-home pay of those in low paid work. [135977]
§ Dawn PrimaroloMeasures introduced during this Parliament have provided significant extra help for those in low-paid work.
The National Minimum Wage, introduced in April 1999, is estimated to have increased the wages of 1.5 million low-paid workers.
The new 10p starting rate of income tax has halved the marginal tax rate for 1.9 million low-paid working people, and reforms to employee National Insurance Contributions mean that one million people no longer have to pay NICs.
Through the Working Families Tax Credit, the Government are giving additional support to over 1.1 million working families with children who are now receiving on average £30 more per week compared to old Family Credit.
These measures demonstrate the Government's commitment to increase the incomes of people in low-paid work and to ensure that work pays more than benefit. By the end of this Parliament, a family on half 338W average earnings—£12,500—and with two children will be £2,600 a year better off as a result of the tax and benefit reforms.