HC Deb 09 January 2002 vol 377 cc888-9W
David Cairns

To ask the Chancellor of the Exchequer what assessment he has made of the impact of the working families tax credit on the income levels of the poorest working families in the Greenock and Inverclyde constituency. [25424]

Mr. Andrew Smith

The working families tax credit (WFTC) is a success in making work pay for families with children. At August 2001 WFTC was helping 1,270,000 families. This is 52 per cent, more families than were benefiting from family credit at its peak, and families were receiving on average around an extra £35 per week. In the Greenock and Inverclyde constituency 1,893 families with children were benefiting from WFTC at August 2001.

Mr. Frank Field

To ask the Chancellor of the Exchequer, pursuant to his answer of 17 December 2001,Official Report, column 33W, on working families tax credit, how many families had an increase in net income due to the working families tax credit regime of (a) 0 to 10 per cent., (b) 10 to 20 per cent., (c) 100 to 110 per cent., (d) 110 to 120 per cent., (e) 120 to 130 per cent., (f) 130 to 140 per cent. and (g) 140 to 150 per cent. [25207]

Mr. Andrew Smith

It is estimated from the Family Resources Survey that, under the working families tax credit (WFTC) regime applying to awards starting from June 2001, the numbers of such families are about(a) 400,000 and (b) 270,000. The sample size is too small to yield any reliable estimates for (c) to (g) except those provided in the answer given to my right hon. Friend on 4 December 2001, Official Report, column 203W.

Notes:

1. Estimates are derived from 1999–2000 FRS with incomes projected forward to 2001–02 and assuming the 2001–02 regimes for income tax and national insurance contributions. They are subject to sampling error.

2. Increase in net income is defined as final net income less initial net income, assuming no behavioural change. Final net income is income as projected, including estimated entitlement to WFTC, housing benefit (HB) and council tax benefit (CTB). Initial net income is this less the estimated entitlement to WFTC, plus any consequent increase in estimated entitlement to HB and CTB.