HC Deb 31 October 2000 vol 355 cc410-1W
Mr. Willetts

To ask the Chancellor of the Exchequer what assessment he has made of the impact of paying a specific benefit through the pay packets on(a) claimants' behaviour and (b) the labour market. [134518]

Dawn Primarolo

The Working Families Tax Credit, as a tax credit rather than a welfare benefit, is paid through the wage packet. This reduces the stigma attached to receiving in work support and clearly demonstrates the reward of work compared to welfare.

The Government continue to monitor the effects of the Working Families Tax Credit.

Mr. Willetts

To ask the Chancellor of the Exchequer what the basis was of the forecast contained in the Treasury press release of 7 September 1999 that 1.5 million people would receive the Working Families Tax Credit. [134607]

Dawn Primarolo

[holding answer 26 October 2000]: The forecast contained in the Treasury press release of 7 September 1999 was based on the best information available at that time. It used survey data from both the Family Resources Survey and the Family Expenditure Survey up to 1997–98 and built on DSS experience of operating Family Credit and Disability Working Allowance.

Mr. Willetts

To ask the Chancellor of the Exchequer what recent estimate he has made of the level of fraud in the Working Families Tax Credit. [134591]

Dawn Primarolo

[holding answer 26 October 2000]: There is no statistically valid data currently available from which a meaningful estimate of the level of fraud in tax credits can be made.

Mr. Willetts

To ask the Chancellor of the Exchequer what assessment he has made of the labour market effect of the Working Families Tax Credit; and what assessment he has made of the report from the Institute of Fiscal Studies on the labour market impact of the Working Families Tax Credit. [134630]

Dawn Primarolo

[holding answer 26 October 2000]: The Working Families Tax Credit is one of a number of reforms to make work pay for those on the lowest incomes in work. Treasury estimates of the possible impact on labour supply of the complete package of reforms—including changes to employee National Insurance and income tax rates—were published in "Tackling Poverty and Making Work Pay—Tax Credits for the 21st Century" (The Modernisation of Britain's Tax and Benefit System, Number 6, March 2000, paragraph 2.13). These estimates took into account recent research and were based on methodology used by the Institute for Fiscal Studies in 1999 study: "Entering Work and the British Tax and Benefit System".