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Working Tax Credit

Volume 459: debated on Wednesday 18 April 2007

To ask the Chancellor of the Exchequer for what reasons those without children and disabilities and under the age of 25 are ineligible to claim working tax credit. (131265)

The working tax credit provides financial support on top of earnings for households with low incomes, making sure that work pays. It was introduced to tackle poor work incentives and persistent poverty among working people, and to respond to family circumstances, targeting resources on those most in need.

The working tax credit recognises the difficulties that those with children face in combining work with family responsibilities and the difficulties that workers with a disability may face. Workers with neither children nor a disability, aged 25 or over, are entitled to the working tax credit provided they work at least 30 hours a week. Eligibility begins at this point because it is those aged 25 or over who are most likely to face poorer incentives to work or suffer persistent poverty in work.