Tax Credits

Part of Oral Answers to Questions — Treasury – in the House of Commons at 10:30 am on 29th March 2007.

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Photo of Stephen Timms Stephen Timms The Chief Secretary to the Treasury 10:30 am, 29th March 2007

I do not agree with the hon. Gentleman's characterisation of the system. The system is doing a great job— [ Interruption. ] Yes, it is. One of the great strengths of the present system is its flexibility. It can respond very quickly when a household's income falls and extra help is needed. That would be lost if we were to change to a system that was based on the previous year's incomes. We will of course keep the matter under review, but the hon. Gentleman's solution does not look attractive to me.