Tax Credits Debate

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Department: HM Treasury
Tuesday 15th September 2015

(9 years, 3 months ago)

Commons Chamber
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James Cartlidge Portrait James Cartlidge
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I strongly agree with my hon. Friend. My point about work incentives is based on my experience as a small business owner. I found the situation with tax credits extraordinary. I had members of staff who declined pay rises because they would lose so much from their tax credits, and most common of all were part-time staff who would not go full time because the tax credits were so generous.

Owen Thompson Portrait Owen Thompson (Midlothian) (SNP)
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Will the hon. Gentleman give way?

James Cartlidge Portrait James Cartlidge
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I will not give way at this moment. People were receiving the equivalent of full-time pay on part-time hours, and in that situation can we blame someone for not wanting to take on more hours? It is a real problem, and many other employers have made the same point to me. The problem is widespread.