Welfare Tax Credits: Scotland

HM Treasury written question – answered at on 21 July 2015.

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Photo of Martyn Day Martyn Day Scottish National Party, Linlithgow and East Falkirk

To ask Mr Chancellor of the Exchequer, if he will make an estimate of the total reduction in credits to households in Scotland that will arise in the next financial year as a result of measures announced in the Summer Budget 2015.

Photo of Martyn Day Martyn Day Scottish National Party, Linlithgow and East Falkirk

To ask Mr Chancellor of the Exchequer, what estimate he has made of the number of households in Scotland which will experience a reduction in tax credits as a result of measures announced in the Summer Budget 2015.

Photo of Martyn Day Martyn Day Scottish National Party, Linlithgow and East Falkirk

To ask Mr Chancellor of the Exchequer, what estimate he has made of the average change in income for (a) women and (b) households with children of the tax credit changes outlined in the Summer Budget 2015.

Photo of Damian Hinds Damian Hinds The Exchequer Secretary

The Government is making changes to Tax Credits and Universal Credit which will help put welfare spending on a more sustainable path. That means more emphasis on support to hardworking families on low incomes by reducing income tax through increases in the personal allowance and increasing wages, than on topping up low wages through tax credits.

HMT has published distributional analysis information on the impact of the Summer Budget 2015 tax credit measures on households. This information can be found here:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/443229/PU1822_Distributional_Analysis.pdf

The government is focusing the tax credits system on those who need it most. Prior to 2010, 9 out of 10 families with children in the UK were eligible for tax credits The measures announced in the Summer Budget 2015 will result in 5 out of 10 UK families being eligible for tax credits support.

The number of affected households and total reduction in credits to households in Scotland is not available.

HMRC publishes information on families’ tax credit award within Scotland. The most recent available data is for 2013-14 and can be found here on gov.uk.

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