Oral Answers to Questions

Debate between Helen Jones and Steve Webb

Monday 3rd November 2014 Commons Chamber

[Steve Webb]

My hon. Friend is quite right. It is entirely welcome that we are ensuring not only that more people get into work, but that work pays through the universal credit reform, which this coalition Government are proud to have introduced.

[Helen Jones (Warrington North) (Lab)]

According to the Government’s own figures, 20% of working people in my constituency earn less than the living wage, yet they will lose hundreds of pounds a year through this Government’s freeze in working tax credit. How does that possibly reward people who want to work, and how can the Minister justify that when the Government give tax cuts to the wealthy?

[Steve Webb]

The largest number of people who have benefited most from tax cuts during this Government are those who are in work and paying income tax. Under this Government, a typical basic rate taxpayer is £800 a year better off in cash terms as a result of our changes to the personal income tax allowance, and over 3.2 million individuals will have been taken out of income tax altogether.