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Benefit Changes

Volume 162: debated on Monday 27 November 1989

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19.

To ask the Secretary of State for Social Security what he intends doing to reduce any disincentive to work effect of the April 1988 benefit changes.

We have improved incentives by bringing about significant increases in the real value of take-home pay through reductions in income tax, increased tax allowances, the restructuring of national insurance contributions last month and improvements to in-work benefits. The replacement of family income supplement by family credit in April 1988 ended the absurd situation where an increase in pay could make people worse off. We recognise the importance of improving work incentives and shall continue to pursue policies in the future which make it worthwhile for people to take and keep employment.

62.

To ask the Secretary of State for Social Security what he estimates to be the maximum weekly addition to benefit payable as a result of his proposals announced on 25 October.

From next April, the parents of a severely disabled child under two could receive up to £65·75 in additional financial help through attendance allowance and invalid care allowance.