Oral Answers to Questions

Jessica Morden Excerpts

Tuesday 6th March 2012 Commons Chamber

The Chancellor of the Exchequer was asked—

[Jessica Morden (Newport East) (Lab)]

1. What assessment he has made of the effect on families of the changes in eligibility rules for working tax credit to be introduced in April 2012.

[Luciana Berger (Liverpool, Wavertree) (Lab/Co-op)]

4. What assessment he has made of the effect on the economy of changes to the working tax credit to be introduced in April 2012.

--- Later in debate ---

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

The Government are reforming tax credits to ensure that support is targeted on those most in need and costs are controlled. The change to the working hours requirement for couples with children makes the system fairer by reducing the disparity between lone parents and couples. Lone parents have to work 16 hours a week to be eligible for tax credits, so it is right that couples should have to work more hours between them.

[Jessica Morden]

Some 730 families in Newport will be hit by the changes to tax credits, which means that they will either have to work more hours or face losing up to £3,800 a year. The Government have so far demonstrated no understanding of the difficulties faced by families in this position trying to find extra work. Will the Minister tell my constituents exactly where these mythical hours will come from?

[Miss Smith]

I shall be precise. I can tell the hon. Lady that the number of vacancies was up by 11,000 in the last three months to January 2012, and 1.07 million people moved into employment in the last quarter.