Tax Credits (Working Families)

Debate between Shabana Mahmood and Lord Evans of Rainow

Tuesday 7th July 2015 Commons Chamber

[Shabana Mahmood]

My hon. Friend has made a powerful point, and I agree with all that she has said.

[Graham Evans (Weaver Vale) (Con)]

When Gordon Brown introduced tax credits in 1998, he said that the cost would be £2 billion. It is now £30 billion. Will the hon. Lady tell us whether that is too much, too little, or about right?

[Shabana Mahmood]

I think that what we are talking about is the cost of making work pay in the economy that we have at the moment. As I will explain in more detail later, the Government are doing things the wrong way round. As was pointed out by the Chair of the Work and Pensions Select Committee, my right hon. Friend the Member for Birkenhead (Frank Field), we must establish a higher-skill, higher-wage economy before we remove the support for those who are stuck on low pay. I would prefer people not to be in that position.