Working Tax Credit

Steve Webb
To ask the Chancellor of the Exchequer if he will review the operation of the 30-hour threshold for working tax credit eligibility for childless households of working age.

Mr. Timms
Parents and people with a disability are eligible for working tax credit (WTC) if they work at least 16 hours per week, while other people, who face less of a barrier to work, are eligible from 30 hours. WTC, including the 30-hour rule, has helped improve work incentives for people on low incomes.

To provide extra help to people working shorter hours, the Chancellor announced in the Budget that from 31 July 2009, HM Revenue and Customs will provide a four-week run of entitlement to WTC for those who cease to be eligible as a result of working fewer than 30 hours.