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Welfare Tax Credits

Volume 494: debated on Monday 15 June 2009

To ask the Chancellor of the Exchequer if he will exclude households with an income of over £50,000 from eligibility for tax credits. (278015)

Nine out of 10 families are entitled to tax credits. This near-universal provision has helped reverse decades of stigma attached to financial support that prevented the very poorest taking up the help they needed. Take-up of tax credits is now the highest ever for an income-related system of financial support, at 81 per cent. overall and 92 per cent. for the poorest fifth of families. Tax credits are carefully targeted so that the greatest support goes to the poorest families. Only a tiny proportion of tax credits spending goes to those earning more than £50,000—just 0.2 per cent. of overall entitlement in 2007-08.