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Child Tax Credits

Volume 448: debated on Tuesday 11 July 2006

To ask the Chancellor of the Exchequer what assessment he has made of the impact of child tax credits on child poverty since 1997; and if he will make a statement. (83898)

Between 1998-99 and 2004-05, 700,000 children have been lifted out of relative poverty. Macroeconomic stability, active labour market policies such as the new deal, policies to make work pay such as the working tax credit, and financial support for families, including the child tax credit, have all contributed to this success.

Since 2002-03, the last year before child tax credit and working tax credit were introduced, 200,000 children have been lifted out of relative poverty.

As a result of the Government’s reforms to the tax and benefit system since 1997, by October 2006, in real terms, families with children will be, on average, £1,500 a year better off, while those in the poorest fifth will be, on average, £3,400 per year better off.