§ James PurnellTo ask the Chancellor of the Exchequer what assessment he has made of how the employment tax credit could be combined with training to increase the earnings potential of the low paid. [21625]
§ Dawn PrimaroloRecent work by CBI-TUC and the Performance and Innovation Unit has underlined the importance of workforce development and skill acquisition in the UK. Their reports identify significant market failures that restrict training opportunities for lower skilled employees. To tackle these market failures and deliver a long-term improvement in workplace training the Government are considering a range of options for a new policy framework to reform the UK training system and encourage more training among people with low skills. In the PBR, the Government said they would examine an approach based on four complementary, linked elements which would require commitments by stakeholders—the Government, employers and individuals. These are: financial support for employers whose staff take time off; free learning provision for employees; and entitlement to take-up training and extended guidance and support.
§ James PurnellTo ask the Chancellor of the Exchequer what assessment the Government have made of the relationship between incentives to work for a second earner and the introduction of the employment tax credit. [21626]
§ Dawn PrimaroloThe working tax credit aims to make work pay and tackle poverty. The working tax credit will improve work incentives for second earners by
assessing against gross income, enabling the second earner in the household to take advantage of national insurance contributions thresholds, income tax allowances and rate bands. In this way, gross tapers should lessen the unemployment trap for tax credit recipients by reducing the average deduction rate;allowing couples with children with joint working hours of over 30 hours to qualify for an extra credit, even if neither of them individually works 30 hours or more.