Clause 10 - Entitlement
Tax Credits Bill
Public Bill Committees, 17 January 2002, 3:00 pm
Professor Steve Webb (Northavon, Liberal Democrat)
This helpful group of amendments takes us to the nub of whether we need working tax credits as distinct from simply adding adult elements to the children's tax credit. I shall try to refine the arguments that I advanced on Second Reading, instead of blowing £15 billion as I did on that occasion. The objectives that the Government want to achieve through working tax credits could be achieved by other means that would be less burdensome on business, better for the Exchequer and more effective in tackling poverty.
The Government's proposals for working tax credits in respect of childless people will help only those who work for more than 30 hours a week and are aged over 25, with additional amounts for those aged over 50. The over-50s are a distinct group for whom there is a new deal programme because it is important to get them back into work. That alone does not, however, justify a tax credit for the whole population.
I cannot help noting in passing that the hon. Member for Arundel and South Downs stood for Parliament 25 years ago.