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Welfare Tax Credits

Treasury written question – answered on 18th July 2013.

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Photo of Stephen Hepburn Stephen Hepburn Labour, Jarrow

To ask the Chancellor of the Exchequer

(1) how many families in (a) Jarrow constituency, (b) South Tyneside, (c) the North East and (d) the UK have received working tax credits in each year since that scheme's inception;

(2) how many people have received working tax credit payments in (a) Jarrow constituency, (b) South Tyneside, (c) the North East and (d) the UK in each year since that scheme's inception;

(3) how many people have received child tax credit payments in (a) Jarrow constituency, (b) South Tyneside, (c) the North East and (d) the UK in each year since that scheme's inception.

(4) how much money has been overpaid to working tax credit recipients in (a) Jarrow constituency, (b) South Tyneside, (c) the North East and (d) the UK in each year since that scheme's inception;

(5) how much money has been overpaid to child tax credit recipients in (a) Jarrow constituency, (b) South Tyneside, (c) the North East and (d) the UK in each year since that scheme's inception;

(6) how many families in (a) Jarrow constituency, (b) South Tyneside, (c) the North East and (d) the UK have received tax credits in each year since that scheme's inception;

(7) how many families in (a) Jarrow constituency, (b) South Tyneside, (c) the North East and (d) the UK have received child tax credits in each year since that scheme's inception;

(8) how many people in work in (a) Jarrow constituency, (b) South Tyneside, (c) the North East and (d) the UK have received working tax credits in each year since that scheme's inception;

(9) how many people in work in (a) Jarrow constituency, (b) South Tyneside, (c) the North East and (d) the UK have received (i) tax credits and (ii) child tax credits in each year since those schemes inception.

Photo of Sajid Javid Sajid Javid The Economic Secretary to the Treasury

The information is as follows:

PQ 0955W, 0961W and 0962W

Information on the number of families benefiting from tax credits, child tax credit (CTC) and working tax credit (WTC) for the geographical areas requested is available in the HM Revenue and Customs snapshot publication “Personal Tax Credits: Provisional Statistics—Geographical Statistics”. Data for April and December each year from April 2009 to April 2013 are available at:

www.hmrc.gov.uk/statistics/prov-geog-stats.htm

Data for years 2004 and 2008 are available here:

http://webarchive.nationalarchives.gov.uk/*/http://www.hmrc.gov.uk/stats/personal-tax-credits/cwtc-geog-stats.htm

PQ 0959W and 0960W

Information on the number of tax credits awards where there is an overpayment as at 5 April 2012 is published in the HMRC publication “Child and Working Tax Credits Statistics. Finalised Annual Awards 2011-12. Supplement on Payments 2011-12”. This publication is available on the HMRC website at:

http://www.hmrc.gov.uk/statistics/fin-main-stats.htm#2

It is not possible to split overpayments into parts attributable to CTC and WTC but table 4 in this publication gives the level of overpayments at 5 April 2012 split by profile position (that is, whether the family is out of work with children, in work with children, in work without children etc) at UK level.

Equivalent publications for previous years are available at:

http://webarchive.nationalarchives.gov.uk/*/http://www.hmrc.gov.uk/stats/personal-tax-credits/final-award-main.htm

HMRC also publishes information on overpayments for lower geographical areas in the publication “Child and Working Tax Credits Statistics. Finalised Annual Awards 2011-12. Supplement on Payments 2011-12. Geographical Analysis” at:

http://www.hmrc.gov.uk/statistics/fin-geog-stats.htm#1

Archived publications for previous years are available at:

http://webarchive.nationalarchives.gov.uk/*/http://www.hmrc.gov.uk/stats/personal-tax-credits/final-award-geog.htm

Earlier years would be available only at disproportionate cost.

Table 1: Finalised awards overpaid at 5 April by position on profile at that date—North East
£ million
  2007-08 2008-09 2009-10 2010-11 2011-12
Terminated awards 13.6 12.2 10.8 15.9 22.3
           
Positive entitlement at 5 April:          
Not in work with children 0.3 3.4 5.4 5.3 7.1
           
In work with children:          
WTC and CTC 1.5 11.5 19.4 22.0 22.5
CTC only, more than family element 0.8 3.9 6.0 6.1 7.5
CTC only, family element 0.3 1.2 1.8 1.6 1.7
CTC only, less than family element 0.2 0.2 0.1 0.1
           
In work, no children (WTC only) 0.3 1.5 3.5 2.2 3.0
           
Entitlement at 5 April but tapered to zero 0.2 0.9 1.3 1.7 2.8
           
Award ceased during year 26.0 6.5 8.4 10.1 10.4
           
Total all families 43.2 41.3 56.9 64.8 77.6
Table 2: Finalised awards overpaid at 5 April by position on profile at that date—South Tyneside
£ million
  2007-08 2008-09 2009-10 2010-11 2011-12
Terminated awards 0.8 0.7 0.5 0.9 1.6
           
Positive entitlement at 5 April:          
Not in work with children 0.2 0.3 0.4 0.4
           
In work with children:          
WTC and CTC 0.1 0.6 1.1 1.2 1.3
CTC only, more than family element 0.3 0.3 0.2 0.4
CTC only, family element 0.1 0.1 0.1
CTC only, less than family element
           
In work, no children (WTC only) 0.1 0.2 0.2 0.2
           
Entitlement at 5 April but tapered to zero 0.1 0.1 0.2 0.2
           
Award ceased during year 1.6 0.3 0.5 0.7 0.7
           
Total all families 2.5 2.4 3.3 3.9 5.0
Table 3: Finalised awards overpaid at 5 April by position on profile at that date—Jarrow
£ million
  2007-08 2008-09 2009-10 2010-11 2011-12
Terminated awards 0.4 0.3 0.2 0.4 0.7
           
Positive entitlement at 5 April:          
Not in work with children 0.1 0.1 0.1 0.2
           
In work with children:          
WTC and CTC 0.1 0.5 0.6 0.8 0.6
CTC only, more than family element 0.2 0.2 0.2 0.4
CTC only, family element 0.1 0.1
CTC only, less than family element
           
In work, no children (WTC only) 0.1 0.1 0.1
           
Entitlement at 5 April but tapered to zero 0.1 0.1 0.1
           
Award ceased during year 0.9 0.1 0.3 0.3 0.4
           
Total all families 1.4 1.3 1.7 2.1 2.5

The value of overpayments, both at UK level and in the areas requested, has increased over the last five years. However, as a proportion of total entitlement it has stayed fairly stable. Policy changes announced in Budget 2010 and Spending Review 2010 will have increased the level and number of overpayments. In particular, the decrease in the income rises disregard from £25,000 to £10,000 will have increased overpayments in 2011-12. In addition, increased error and fraud interventions by HMRC may have increased overpayments as well as identifying error and fraud.

HMRC’s strategy for reducing tax credit overpayments is to continue to focus on getting it right first time. We are developing a greater understanding of the causes of overpayments and continue to re-engineer products and processes to reduce the amount of debt entering the system.

PQ 0956W, 0957W, 0963W and 0964W

The information provided is based on snapshots of tax credits awards as at April where possible, and will have been liable to change once awards were finalised. For 2003-04, January was the closest published month to April 2004.

“People” are defined as adults in a family unit benefiting from working tax credit and/or child tax credit as relevant. A family can have one or two adults present.

“People in work” are defined as an adult in a family eligible for working tax credit, who works 16 or more hours a week.

Table 4: Number of people benefiting from working tax credit by month
Thousand
  Jarrow South Tyneside North East UK
January 2004 12.4 22.6 381.6 7,846.2
April 2005 12.5 22.6 386.0 8,016.7
April 2006 12.3 22.1 378.4 7,908.2
April 2007 12.5 22.5 378.8 7,935.6
April 2008 12.6 22.5 372.0 7,916.2
April 2009 12.5 22.1 366.6 7,874.4
April 2010 12.5 22.2 370.2 8,027.8
April 2011 12.8 22.4 372.9 8,153.9
April 2012 10.4 18.2 315.6 6,938.2
April 2013 7.0 12.9 222.9 5,045.2
Table 5: Number of people benefiting from child tax credit by month
Thousand
  Jarrow South Tyneside North East UK
January 2004 12.3 22.7 379.9 8,006.2
April 2005 12.6 23.3 397.1 8,485.5
April 2006 12.7 23.4 398.1 8,543.4
April 2007 12.9 24.0 403.4 8,673.4
April 2008 13.0 24.1 401.6 8,713.2
April 2009 13.3 24.4 402.9 8,808.5
April 2010 13.5 25.1 409.2 9,009.0
April 2011 13.7 24.9 410.9 9,110.7
April 2012 11.6 21.0 356.5 7,949.4
April 2013 8.3 16,2 272.2 6,158.8
Table 6: Number of people in work benefiting from working tax credit by month
Thousand
  Jarrow South Tyneside North East UK
January 2004 10.4 18.7 312.1 6,294.1
April 2005 10.6 18.8 314.9 6,401.8
April 2006 10.3 18.4 309.9 6,304.4
April 2007 10.6 18.7 310.5 6,330.5
April 2008 10.7 18.6 305.3 6,326.1
April 2009 10.7 18.3 300.5 6,291.4
April 2010 10.6 18.2 303.7 6,405.1
April 2011 10.8 18.4 306.2 6,496.5
April 2012 8.7 14.7 254.5 5,429.4
April 2013 5.6 10.2 177.1 3,902.7
Table 7: Number of people in work benefiting from child tax credit by month
Thousand
  Jarrow South Tyneside North East UK
January 2004 9.8 17.6 295.4 5,089.5
April 2005 9.7 17.2 291.6 6,097.2
April 2006 9.6 16.8 285.4 5,960.8
April 2007 9.7 17.0 283.8 5,939.5
April 2008 9.8 16.7 279.0 5,919.3
April 2009 9.6 16.2 270.4 5,803.0
April 2010 9.4 16.0 269.1 5,812.4
April 2011 9.4 15.9 268.8 5,858.2
April 2012 7.4 12.4 218.0 4,803.2
April 2013 4.6 8.2 142.3 3,290.9

The Government is taking steps to ensure that spending on welfare is sustainable by making sure that work pays, while also supporting those most in need. It is rewarding work by:

raising the personal allowance to £9,440 and announcing a further increase to £10,000 from April 2014. The combined effect of all personal allowance increases announced by this Government will be to remove 2.7 million low income individuals, under 65, out of income tax altogether from April 2014; developing a new tax-free child care scheme to expand support for affordable child care to 2.5 million families; and introducing universal credit to make the benefits of work clearer and simpler, with the aim of offering a smooth transition into work and encouraging progression in work.

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