Child Tax Credit

HC Deb 27 May 2004 vol 421 cc1795-6W

Mr. Willetts

To ask the Secretary of State for Work and Pensions (1) if he will make a statement on the proposed timetable for transferring the child elements of jobseeker's allowance and income support to child tax credit payments; [166482]

(2) if he will place in the Library a copy of the agreement reached between the Department and the Inland Revenue ensuring that families do not lose the child element of jobseeker's allowance and income support until child tax payments are guaranteed. [166542]

Mr. Pond

The transfer of income support and jobseeker's allowance cases on to child tax credit began on 6 April 2004 as planned. Families on income support and jobseeker's allowance who were already receiving child tax credit have started to receive support for their children solely through child tax credit. New claimants of income support and jobseeker's allowance are no longer awarded child allowances in those benefits, but receive child tax credit instead.

The automatic phased transfer on to child tax credit of the remaining families with children within income support and jobseeker's allowance is planned to begin from October 2004. Meanwhile, families will continue to receive the same level of support through their benefits as they would from child tax credit.

We have always recognised that it is important to ensure a successful and smooth migration for claimants of income support and income-based jobseeker's allowance on to child tax credit. We have therefore taken steps to ensure that those families will not lose the child element of jobseeker's allowance and income support until we have confirmation that child tax credit has been awarded. The technical design of the income support and jobseeker's allowance computer systems ensure this. The child and family elements will automatically continue to be paid until a confirmation that child tax credit has been awarded is received from Inland Revenue.

In April 2002, The Treasury published "The Child and Working Tax Credits" (HMT 2002), which made it clear that continuity of payment is of particular importance to us.