Welfare Benefits: Women

Lord Forsyth of Drumlean Excerpts

Thursday 10th January 2013 Lords Chamber

[Lord Freud]

My Lords, the impact on women of the uprating changes, in a Bill that will come to this House shortly, is greater; 33% of women are affected, against only 29% of men. The redistribution under universal credit switches slightly and, in proportion, households with women do slightly better in numbers than households with men—40% of households with women are gainers, compared with 39% of households with men.

[Lord Forsyth of Drumlean]

My Lords, can my noble friend explain how it can be fair that, because of the changes in child benefit, in households with three children where only one partner is working and has a student loan, if their salary goes up from £50,000 to £60,000, they will face an effective marginal tax of 75%? In contrast, households with incomes of £100,000, where both partners are working, will face a marginal tax of 45%. How is that consistent with a fairer tax system?

[Lord Freud]

My Lords, the reason for the reduction in child benefit for those on higher incomes is so that it could be implemented in this way. As my noble friend will know, it has been adjusted to provide a taper at £50,000 to £60,000 to smooth that transition.