Oral Answers to Questions Debate

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Department: HM Treasury

Oral Answers to Questions

Nicholas Dakin Excerpts
Tuesday 16th November 2010

(14 years ago)

Commons Chamber
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Justine Greening Portrait Justine Greening
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My hon. Friend is right that alongside the domestic economic mess we inherited, we also inherited an EU budget deal that was completely out of touch with the situation faced by many European countries. The fall in our abatement is largely due to the give-away agreed by the previous Government in 2005, which will be fully phased in from 2011. It is expected to cost the UK about £2 billion per annum. That is £2 billion that was needlessly given away for absolutely nothing in return—yet another failing of the British people by the Labour party.

Nicholas Dakin Portrait Nic Dakin (Scunthorpe) (Lab)
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15. What mechanism he plans to use to ensure that households which include one or more higher rate taxpayer cease to receive child benefit payments.

David Gauke Portrait The Exchequer Secretary to the Treasury (Mr David Gauke)
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From January 2013 Her Majesty’s Revenue and Customs will withdraw child benefit from higher rate taxpayers using PAYE and self-assessment systems. The vast majority of claimants will continue to receive child benefit, and will not be affected by this change.

Nicholas Dakin Portrait Nic Dakin
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Earlier this year, the Prime Minister said he wanted this Government to be the most family-friendly Government we have ever had in this country. How does this proposal support a family where one partner stays at home to look after the children while the other partner earns over £45,000 a year?

David Gauke Portrait Mr Gauke
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It does families and everyone else in this country no good if we do not get to grips with the fiscal crisis. If the Opposition are saying households paying higher rate income tax should continue to receive child benefit while those who do not earn so much contribute towards that, it once again shows that they are not getting to grips with the scale of the crisis.