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Clause 2 - Personal allowance for 2013-14 for those born after 5 April 1948

Part of Finance (No. 2) Bill – in a Public Bill Committee at 4:15 pm on 23rd April 2013.

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Photo of David Gauke David Gauke The Exchequer Secretary 4:15 pm, 23rd April 2013

The first point is that there are significant weaknesses in the measurement of child poverty. The measure is based on 60% of median income, which causes some curious effects. When the economy goes into recession, there is a reduction in child poverty, which is perverse. We are keen to ensure we make work pay. If we want to get to grips with child poverty in the long term, in a sustainable way that does not rely on large transfers of payments and an expensive tax credits system, we must ensure that we have a culture that encourages work, that we have fewer workless households and that households can take greater responsibility.