Oral Answers to Questions Debate

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Department: HM Treasury

Oral Answers to Questions

Tony Baldry Excerpts
Tuesday 10th March 2015

(9 years, 9 months ago)

Commons Chamber
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Andrea Leadsom Portrait Andrea Leadsom
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The hon. Gentleman will surely be delighted at the news from the IFS and other forecasters that real wages are now rising at a higher rate than inflation, and it is thanks to our long-term economic plan that inflation is so low. We have had council tax cuts and fuel duty freezes, and we have done everything we can by raising personal tax-free allowances to enable people to benefit from a recovering economy, but we can only do it by sticking to a long-term economic plan.

Tony Baldry Portrait Sir Tony Baldry (Banbury) (Con)
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Am I right in thinking that universal credit will replace working tax credits and child tax credits, making 3 million households better off by an average of £177 per month and improving work incentives by allowing people to keep more of their income as they move into work?

Andrea Leadsom Portrait Andrea Leadsom
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Yes, my right hon. Friend is exactly right. Universal credit is a major reform that will transform the welfare state in Britain for the better. It will replace the current complex system of means-tested working-age benefits, including tax credits, and make 3 million households better off by on average £177 a month.