To ask the Chancellor of the Exchequer if he will estimate the cost to the Exchequer of increasing the first income threshold for tax credits to £10,000, removing the second income threshold and applying a constant taper rate of 44 per cent. (270853)

[holding answer 24 April 2009]: The estimated cost of increasing the first income threshold for tax credits to £10,000, of removing the second income threshold and applying a constant taper rate of 44 per cent. would be £1.4 billion in 2010-11. No account has been taken of possible behavioural effects.

These changes would not affect the number of claimants eligible for tax credits but would increase the number of claimants with awards reduced to zero.