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New Clause 15 - Repeal of Tax Credits Regulations 2015

Part of Welfare Reform and Work Bill – in a Public Bill Committee at 10:00 am on 20th October 2015.

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Photo of Priti Patel Priti Patel Minister of State (Department for Work and Pensions) 10:00 am, 20th October 2015

I am speaking on behalf of my hon. Friend the Exchequer Secretary, who has been paired for the clause.

It is clear that we are going to disagree on this clause. I will speak about the tax credits changes in the context of the new deal presented by the Government in the summer Budget. As my right hon. Friend the Chancellor stated at the time, the deal was to move Britain from a high welfare, high tax, low wage economy to a low welfare, low tax, higher wage economy. I know that I am rehearsing arguments that hon. Members have heard previously, but spending on tax credits more than trebled in real terms between 1999 and 2010; at the same time that increase in spending did not address issues of poverty. There was a 20% rise in poverty at that time.