Tax Credits (Working Families)

Alan Mak Excerpts

Tuesday 7th July 2015 Commons Chamber

[Richard Fuller (Bedford) (Con)]

rose—

[Alan Mak (Havant) (Con)]

rose—

[Chris Philp]

rose—

--- Later in debate ---

[Shabana Mahmood]

The hon. Gentleman has made some interesting and important observations about the way in which we can encourage employers to pay the living wage, and I hope that Ministers take up his suggestions. Ours was a clear, straightforward policy to incentivise the paying of the living wage by sharing with employers the benefit that the Government obtain because people are earning more money.

[Alan Mak]

rose—

[Chris Philp]

rose—

--- Later in debate ---

[Mr Gauke]

Thank you, Madam Deputy Speaker. I will try to make a little progress. In response to that intervention, I will not speculate about announcements that might or might not be made tomorrow, but I will say that universal credit is a sensible reform that comes alongside a whole raft of other measures by which the Government are helping hard-working people.

[Alan Mak]

Will the Minister give way?

[Mr Gauke]

I will give way for a short intervention.

[Alan Mak]

I know that the Minister cannot comment on future Budgets, but does he share my recollection of previous Budgets in which, instead of managing the nation’s finances, Labour cynically increased tax credits as a pre-election sweetener?

[Mr Gauke]

My hon. Friend makes a reasonable point. There was a certain correlation between the previous Government’s generosity and election years.

The Government are bringing in a raft of measures to help working people. We are giving this nation’s children the best start in life. We have increased our spending on childcare and early-years education by £1 billion. We have given 15 hours of free childcare entitlement to all three and four-year-olds, as well as to the poorest 40% of two-year-olds, and we are doubling that for families in which both parents work. We are extending the right to request flexible working to all. Through tax-free childcare we are giving 20% support on childcare costs, up to £10,000 per child. Universal credit will increase the childcare support for low-income families to 85%. Our pupil premium and early-years pupil premium are giving schools, nurseries and childminders additional money to ensure that children from the most disadvantaged backgrounds do not fall behind. Through our childcare business grant scheme we have 4,500 new childminders and over 30,000 new childcare places.