Tax Credits (Working Families)

Debate between Shabana Mahmood and Chris Philp

Tuesday 7th July 2015 Commons Chamber

[Shabana Mahmood]

My right hon. Friend is absolutely right, and this is where I disagree with the tenor of the comments from Government Members in the debates on the economy thus far in this Parliament. For them, a job is a job is a job, whereas we have a better, bolder vision for people moving into work, not just for their first job, which could be any job, but for progressing. We do not do that by punishing people and taking away the support they rely on when stuck in low-paid work. We have to chart a course towards a higher skilled, higher wage economy, but that is not going to happen before tomorrow’s Budget. The support for those on tax credits should not be removed before we have that high-wage economy.

[Chris Philp (Croydon South) (Con)]

Will the hon. Lady join me in welcoming the fact that the personal allowance rose to £10,600 in the last Parliament, putting £800 a year directly back into the pockets of the people on the lowest pay?

[Shabana Mahmood]

I gently say to the hon. Gentleman that 60% of those in receipt of tax credits do not pay income tax anyway. If someone is working 30 hours a week on the national minimum wage, they are below the £10,600 personal allowance threshold.

--- Later in debate ---

[Chris Philp]

rose—

[Shabana Mahmood]

I will give way to the hon. Member for Bedford (Richard Fuller), but then I must make some progress.