Part of Oral Answers to Questions — Prime Minister – in the House of Commons at 11:30 am on 3rd May 2006.

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Photo of Tony Blair Tony Blair Prime Minister 11:30 am, 3rd May 2006

My hon. Friend is absolutely right in drawing attention to the combination of tax credits, which give enormous support to families, particularly those with young children, and the extra increases in child benefit—child benefit was frozen under the Conservative Government—which has risen by 25 per cent. in real terms, along with the minimum wage. We did not merely introduce the minimum wage in the teeth of the opposition that was mounted by the Conservatives, but increased it. The combination of tax credits and the minimum wage is making work pay for people. That is one of the reasons why we have 2 million extra people in work. My hon. Friend is absolutely right that there are families that benefit from tax credits, as do pensioners. Without them, they would still be living in the poverty that they experienced under the Conservatives.