Rebecca Long Bailey – 2015 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Rebecca Long Bailey on 2015-12-02.

To ask Mr Chancellor of the Exchequer, with reference to paragraph 1.122 of the Spending Review and Autumn Statement 2015, what estimate his Department has made of the effect of reducing the income disregard on the household income of a tax credit claimant family with (a) two earners and two children, (b) one earner and two children, (c) two earners and one child and (d) one earner and one child whose income rose by £5,000 during the year.

Damian Hinds

Reducing the income rise disregard to £2,500 brings forward some of the benefits of Universal Credit, so that tax credit entitlement reflects claimant’s recent earnings. It makes the system fairer so claimants on similar incomes will receive similar awards. The effect of reducing the income rise disregard on a family claiming tax credits will depend on the household’s income level before it increased.