Clause 12 - Child care element
Tax Credits Bill
4:45 pm
Ms Dawn Primarolo (Paymaster General, HM Treasury; Bristol South, Labour)
I cannot say why the amendment would not work, only that it would not produce what the hon. Gentleman hoped for. He went straight to the principle that he wanted to explore: whether there should be compensation for a partner who stays at home caring for the children and does not enter the labour market. It used to be called wages for housework; I do not know what it would be called now.
The Government appreciate and understand that some couples take the decision that one of them will forego paid employment to stay at home because they believe that that is best for their children, and we therefore make payment by other methods, in particular child benefit. It would completely undermine our intentions on work incentives to make compensation for those who stay at home. We oppose the transfer of allowances for the same reason. However, it is important to ensure that those couples receive some recognition. That could be done through the adult element and child benefit, which, I remind the hon. Gentleman, the Government have increased
by 26 per cent, as well as other arrangements. The new tax credits build generously on the working families tax credit. The Government are not prepared to concede this principle. I ask my hon. Friends to oppose the amendment, as it is an inappropriate way of recognising the costs on families, and would require expenditure that we are not prepared to commit ourselves to at this stage.
Amendment negatived.