Oral question asked in the House of Commons, by Betty Williams (Labour). It was answered on Wednesday, 17 March 2010 on behalf of the Wales Office.

Tax Credits

Question: Does my right hon. Friend agree with my constituents that the tax credit system is certainly not a gimmick? Will he confirm my understanding that this Labour Government will continue with the £66,000 limit, whereas the Tory proposal is to reduce it to £50,000, which would certainly affect my constituents?

Answer: I pay tribute to my hon. Friend the Member for Conwy (Mrs. Williams), who is standing down at the next election. She has been a real warrior for north Wales, and particularly for women right across Wales. Everyone respects her for that. As she has said, tax credits have played an absolutely vital role, particularly during the downturn, in helping to keep people in work and off benefits. About 21,600 families whose income fell for six months last year benefited from an average increase of £36 a week in tax credits. That helped to keep people in work, and those people would not have stayed in work if that support mechanism had been cut from underneath them, as the Conservatives are planning.

Secondary information