Tax Credits Bill — Repeals. — 17 Mar 1999

Amendment made: No. 14, in page 8, line 17, after 'Board', insert

'or the Secretary of State'.-- [Dawn Primarolo.]

Amendments made: No. 11, in page 16, line 26, leave out 'Paragraphs (a) and (b)' and insert

Amendment made: No. 13, in page 26, line 12, leave out '165(1)(a) and (b)' and insert '165(1)(a)(i) and (ii)'.-- [Dawn Primarolo.]

Order for Third Reading read.

I beg to move, That the Bill be now read the Third time.

I am pleased to open this debate on the Bill. I rise with some trepidation, in that my hon. Friend the Financial Secretary to the Treasury and the hon. Member for Brentwood and Ongar (Mr. Pickles) have managed to refer in their speeches to films, television programmes and to Shakespeare. I wait with bated breath to see what the hon. Gentleman will come up with in this debate.

We have had very interesting--and I think, on the whole, constructive--debates, both on Second Reading and in Committee. It was a wide-ranging discussion, covering a variety of issues of concern and interest to hon. Members. No doubt many of those points will be revisited during this debate.

Since those debates, the Chancellor has delivered his Budget statement, which builds on the foundations that the Bill puts in place. My right hon. Friend announced an increase in the value of the basic tax credit of £2.50 per week, and an increase in child tax credit of £4.70 from October, and another £1.10 from April 2000; a new fast-track gateway to the disabled persons tax credit from October 2000 to help people who become long-term sick or disabled while working to retain their jobs; and a new income support run-on for lone parents moving into work. Payments for lone parents will continue for the first two weeks at the out-of-work rate to help people bridge the difficult period when they first go back to work.

Mr. Tim Collins (Westmorland and Lonsdale):

In the calculation of the figures that she has just quoted about the difference between being in work and out of work, has the hon. Lady assumed whether people have to drive to work?

I beg to move,

That this House, whilst welcoming additional money for lower paid workers and for disabled people, declines to give a Third Reading to the Tax Credits Bill because it considers the proposed Working Families' Tax Credit to represent a highly inefficient way of spending public money; believes that the Government has provided no evidence that paying the credit through the paypacket will bring benefits commensurate with the £100 million annual cost which will be imposed on businesses; believes that payment through the paypacket will adversely affect recipients at times of family or job change and will increase the scope for fraud; believes that the Bill represents a missed opportunity to tackle the particular incentive problems faced by low-paid homebuyers; and believes that the proposed childcare tax credit is poorly targeted.

Question put, That the amendment be made:--

The House divided: Ayes 164, Noes 295.

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