Tax Credits — 7 Jul 2003 at 21:50

I beg to move,

That this House condemns the Government for failing to pay the new tax credits on time to millions of entitled families, including those who applied before the January deadline; is concerned that many families are still waiting to receive the money they are owed; regrets the serious financial difficulties suffered by many of these families; condemns the clumsy arrangements for paying overdue tax credits; calls on ministers to explain why the Inland Revenue computer system has proved so unreliable; shares the widespread concern that take-up of the new tax credits is likely to be low; regrets the quality of information available on the new tax credits; and calls on the Government to set up a system of emergency Social Fund loans to people who are still waiting for the correct tax credit payment.

I beg to move, To leave out from "House" to the end of the Question, and to add instead thereof:

"notes that the introduction of the Child Tax Credit is the biggest single change in support for families since the Beveridge reforms of the 1940s, and a more radical change than the introduction of Child Benefit 25 years ago; notes that the new tax credits represent the biggest ever investment in families with children, with no government ever having spent so much on children and families; welcomes the fact that 90 per cent. of families with children are eligible for the Child Tax Credit; further welcomes the fact that tax credits are now being paid to 4.2 million families; notes that in addition 1.3 million families with children on Income Support and Jobseekers' Allowance are already benefiting from the increased level of support through their benefits; welcomes the fact that 5.5 million families are therefore now benefiting from tax credits, with more and more being paid every week; and believes that these figures belie the persistent criticism that people would not claim, and that those who said that families would not apply for the new tax credits, and that take up would be low, have been proved wrong."

Question put accordingly, That the original words stand part of the Question:-

The House divided: Ayes 186, Noes 329.

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