Caroline Flint – 2015 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Caroline Flint on 2015-10-21.

To ask Mr Chancellor of the Exchequer, what assessment his Department has made of the effect of (a) the reduction in the level at which working tax credit begins to be withdrawn from £6,420 to £3,850 from April 2015 on work incentives for those on low incomes and (b) increasing of the taper rate to 48 per cent on work incentives for those on low incomes.

Damian Hinds

The Government is making changes to Tax Credits which will help put welfare spending on a more sustainable path. The Government wants to move from a low wage, high tax, high welfare society to a higher wage, lower tax, lower welfare society.

Alongside the introduction of the New Living Wage and raising the Personal Allowance, the intended impact of these reforms is to incentivise work, ensure work always pays, and then allow people to keep more of what they earn.