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Poverty: Children

Volume 460: debated on Wednesday 9 May 2007

To ask the Chancellor of the Exchequer (1) how many children in Copeland he expects to be helped out of living in poverty as a result of the changes announced in the 2007 Budget; (135495)

(2) what percentage of the additional expenditure on tax credits announced in the 2007 Budget is expected to be claimed by families in Copeland;

(3) how many families in Copeland will receive the increase in the child element of the child tax credit announced in the 2007 Budget.

HMRC statistics1 show that, at 3 April 2007, approximately 7,400 children in 4,100 families in Copeland were receiving above the family element of child tax credit and would benefit from increasing the child element by £150 per year above earnings indexation. In addition to this, increasing the child element above earnings indexation will mean that some families in Copeland currently receiving only the family element of child tax credit will also receive some of the child element. It is however, not possible to prevent poverty statistics below the regional level.

Nationally, as a result of the package of measures announced in Budget 2007:

households with children will be, on average, £200 a year better off;

households with children in the bottom fifth of the income distribution will be on average, on average, £350 a year better off; and

200,000 children will be lifted out of poverty.

It is not known what percentage of the additional expenditure on tax credits announced in the 2007 Budget is expected to be claimed by families in Copeland, as we do not break down expenditure to constituency level.

1 http://www.hmrc.gov.uk/stats/personal-tax-credits/ctc-wtc-geog-apr07.pdf