Oral Answers to Questions

Kate Green Excerpts

Monday 9th January 2017 Commons Chamber

[Damian Hinds]

Everybody should benefit from a strong economy, but as well as introducing the national living wage the Government have announced plans to reduce corporation tax further to 17% and to increase the employment allowance, which could be worth up to £3,000 a year.

[Kate Green (Stretford and Urmston) (Lab)]

Is it not perverse of the Government to have reduced work allowances and universal credit at the same time as we have seen increases in the national living wage, meaning that the overall benefit to individuals in work is actually reduced?

[Damian Hinds]

The Government have done a range of things. Universal credit is completely different from the legacy benefits it replaced, so it does not make sense to make a direct comparison with tax credits. We have to see it in the context of greater help with childcare and the introduction of the national living wage. Of course, the increased income tax personal allowance also means that people get to keep more of what they earn.