Jonathan Ashworth – 2015 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Jonathan Ashworth on 2015-10-20.

To ask Mr Chancellor of the Exchequer, if he will estimate what the net income, including tax credits and child benefit, will be of a single parent with two children working 35 hours per week at the (a) national minimum wage and (b) National Living Wage in (i) 2015-16 and (ii) 2016-17.

Harriett Baldwin

By 2017-18, 8 out of 10 working households will be better off as a result of the Personal Allowance, National Living Wage and welfare changes in this Budget. 17.7m households will benefit in total.

The effect on any given household will depend on their specific circumstances. Treasury analysis in the Budget document shows that an example lone parent, who is renting, and works 35 hours on the minimum wage, will see their net income increase by over £1,500 by 2020-21 compared to 2015-16. This represents an increase in real terms.

In order to help parents move into full time employment, the Chancellor of the Exchequer confirmed in the Summer Budget that from September 2017, free childcare entitlement will be doubled from 15 hours to 30 hours a week for working parents of 3 and 4 year olds, an entitlement worth around £5,000 a year.