HC Deb 08 January 2004 vol 416 cc427-8W
Harry Cohen

To ask the Chancellor of the Exchequer what steps he has taken to ensure that people in work will be better off than if on benefits; what timetable he has set for increasing the number of people who are better off in work than if on benefits; and if he will make a statement. [146364]

Dawn Primarolo

The Government have improved gains to work by reducing the starting and basic rates of Income Tax, and reforming National Insurance Contributions. Recent increases in the National Minimum Wage, which was introduced in April 1999, have also significantly boosted the earnings of low paid workers.

Tax credits increase the gains to work for working families on low and moderate incomes. The new tax credits improve gains to work for part-time second earners and have extended financial support to many more working families on low and moderate incomes.

The Government's continuing commitment to making work pay is demonstrated by recent measures in the 2003 Budget and pre-Budget report.

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