Oral Answers to Questions

Baroness Clark of Kilwinning Excerpts

Tuesday 24th April 2012 Commons Chamber

[Danny Alexander]

Tax increment financing has great potential in helping local areas to develop infrastructure projects and supporting economic growth across the country. As I said to the hon. Member for Coventry South (Mr Cunningham), the main tax increment financing scheme will be available to all local authorities in England from April 2013. That will apply to the kind of local authorities that my hon. Friend described.

[Katy Clark (North Ayrshire and Arran) (Lab)]

15. What assessment he has made of the effect of changes to working tax credit on couples in households where one person is retired.

[The Economic Secretary to the Treasury (Miss Chloe Smith)]

Working tax credit is a payment for working households that was introduced by the previous Government to improve work incentives. Retirement is not recognised in the tax credit system. However, there are separate eligibility rules for those over 60, and a level of income for those in retirement is guaranteed by pension credit.

[Katy Clark]

My constituent, Mrs Orr, is losing £290 a month as a result of the tax credit changes. She lives with her husband, who is retired, and her 13-year-old daughter. She works for 20 hours a week at Crosshouse hospital and has tried to increase her contractual hours, but has been unable to do so. She works any overtime that is available. How do you suggest that she makes ends meet?

[Mr Speaker]

I do not, but the Minister might.