Oral Answers to Questions

Debate between Emma Lewell-Buck and Harriett Baldwin

Tuesday 1st December 2015 Commons Chamber

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

14. What recent estimate he has made of the level of household debt.

[The Economic Secretary to the Treasury (Harriett Baldwin)]

Since the financial crisis, households’ financial positions have improved. Household debt as a proportion of income has fallen to 144% in the second quarter of 2015, down from a peak of 168% in the first quarter of 2008.

[Mrs Lewell-Buck]

I thank the Minister for her response, but a large number of my constituents have been alarmed that mistaken overpayments of working tax credits made by Her Majesty’s Revenue and Customs have been recovered, without warning, from their child tax credit entitlements. Is the Department’s policy now to push people into poverty and debt by punishing them for HMRC’s mistakes?

[Harriett Baldwin]

The hon. Lady might remember the terrible roll-out of working tax credits that occurred when the Labour Government were in power. I can assure her that we will continue to improve the administration of tax credits. When her party was in power, people could have a £25,000 change in their income without it affecting their tax credits. We have brought the figure down to £2,500.