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Working Tax Credit

Volume 502: debated on Monday 14 December 2009

To ask the Chancellor of the Exchequer what the take-up rate of working tax credit is among (a) those also claiming child tax credit and (b) those not claiming child tax credit; and what assessment he has made of the effect upon such take-up rates of implementation of the relevant measures announced in Budget 2009. (305741)

Estimates of working tax credit take-up rates for 2006-07, which are the latest available, are provided in the HM Revenue and Customs (HMRC) publication “Child and Working Tax Credit Take-up rates 2006-07”. This publication is available at:

http://www.hmrc.gov.uk/stats/personal-tax-credits/cwtc-take-up2006-07.pdf

The Government recognise that more can be done for people without children, and has set an ambitious target to raise take-up of working tax credit among this group by 100,000 by April 2011. HMRC are making good progress by using a range of measures to reach eligible customers, such as writing to 10,000 households identified through PAYE records; partnership marketing with large employers and others, national and local marketing activity via radio and newspaper advertising, and by working jointly with the Department for Work and Pensions and local authorities as part of the In and Out of Work project.

Separate estimates of the impact of these activities on take-up rates are not available. However, HMRC estimate that taken together these will enable them to meet the target in April 2011.

To ask the Chancellor of the Exchequer what the eligibility rules on hours and incomes are for each type of working tax credit; and when these rules were last reviewed. (305807)

HM Revenue and Customs publish detailed information and guidance on its website at:

www.hmrc.gov.uk/taxcredits/index.htm

and in leaflet WTC2 - Child Tax Credit and Working Tax Credit - A Guide available at:

www.hmrc.gov.uk/leaflets/wtc2.pdf

As I explained to my hon. Friend in the answer I gave him on 24 June 2009, Official Report, columns 897-98W, all aspects of tax credits are kept under review, with any decisions made as part of the Budget process.