Oral Answers to Questions

Sheila Gilmore Excerpts

Tuesday 29th April 2014 Commons Chamber

[Danny Alexander]

That is a very good question. My hon. Friend and I are both very proud of reaching the £10,000 tax-free allowance goal that the Liberal Democrats set in our election manifesto. Our increases in the tax-free allowance total more than £3,000, which is considerably more than the width of the former 10p starting rate band and is, of course, a 0% band. In that sense, it is literally twice as good as the previous policy.

[Sheila Gilmore (Edinburgh East) (Lab)]

For the 17% of wage earners who are already below the income tax threshold, much of what has been said is not of much help. Will the Chief Secretary directly commit to helping low-paid families with child care costs by reinstating the 80% level rather than the 70% level, which he introduced, so that people in that category can begin to gain rather than simply stand still or become worse off?

[Danny Alexander]

I am sure that if the hon. Lady had had longer, she would have welcomed today’s growth figures and the jobs and employment opportunities that that has created for people right across the United Kingdom, particularly in Scotland. The 3.2 million people that the hon. Lady mentions have already been taken out of tax by the actions of this coalition Government—something that she did not welcome. Of course, the extra opportunities to increase their time in work also helps those individuals. We are increasing our support for child care, with the Government providing free hours, extending support under universal credit and introducing tax-free child care, too. This Government have done far more than any previous Government to help working people with children get back into work.