To ask the Chancellor of the Exchequer what assessment he has made of the effect on (a) work incentives, (b) levels of employment and (c) public expenditure of raising the minimum hour requirement for working tax credit from 16 hours per week to 30 hours per week; and if he will make a statement.
People who work less than 30 hours are not generally entitled to working tax credit. However, the qualifying requirement is lower for some groups because they face greater barriers to working longer hours. For single adults with a child, or those with a disability, the qualifying requirement is 16 hours.
The new universal credit, introduced over two Parliaments, will replace the current complex system of means-tested working-age benefits with a simple streamlined payment. The universal credit will improve financial work incentives by ensuring that support is reduced at a consistent and managed rate as people return to work and increase their working hours and earnings.