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Welfare Tax Credits

Volume 460: debated on Wednesday 9 May 2007

To ask the Chancellor of the Exchequer (1) how many people are unable to claim tax credits solely because of their age; (132935)

(2) if he will estimate the cost of lowering the age at which able-bodied people without children can claim tax credits from 25 to 18 years.

Tax credits are not available to families only consisting of adults aged under 25 without children or a disability. There is no upper age limit. If the age at which these families become eligible for tax credits was lowered from 25 to 18 years around 500,000 additional families, mainly single adults, would be eligible to claim and receive tax credits at an estimated cost to the exchequer of £325 million.

These estimates do not include the effects of the disregard which may increase the number of eligible families and estimated cost.