Clause 11 - Maximum rate
Tax Credits Bill
4:15 pm
Mr Howard Flight (Arundel and South Downs, Conservative)
I beg to move amendment No. 32, in page 8, line 19, at end add—
'(8) The prescribed manner of determination must take account of the needs of all the members of a married couple or an unmarried couple by comparison with those of a single person'.
The amendment would ensure that couples in which one partner or spouse does not work are not unfairly treated.
I referred to that issue earlier. The Minister pointed out that it was less suitable to raise it with regard to child tax credit than to working tax credit. With regard to the definitions of entitlement to working tax credit, do the Government intend to address the point that I and the hon. Member for Northavon made earlier about the difference between people who are a decent margin above the poverty line who are lone parents with two children, and people being below it when they are in partnerships in which one spouse is not working? The amendment would make provision for them to address that.
The Minister did not refer to the work of Martin Wolfe. That is a serious issue. We do not want a tax credit system that gives significant fiscal advantage to
one person not to partner up or marry another when children are involved. It is ridiculous that there should be a disincentive to partner up until the partner has earnings that are 170 per cent. of average income. As she said, that needs to be dealt with. Her prior comments suggested that the Government did not feel like doing that. They may do so marginally, but not in a way that will truly level out the problem. She requested, however, that we focus on such issues now rather than when we discuss the child tax credits, so I look forward eagerly to her giving me comfort that such matters will be addressed adequately.