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Written question asked by Steve Webb (Liberal Democrat) on Tuesday, 8 December 1998, in the House of Commons. It was due for an answer on Thursday, 17 December 1998. It was answered by Baroness Primarolo (Labour) on Thursday, 17 December 1998 on behalf of the Treasury.

Treasury

Question
To ask Mr Chancellor of the Exchequer, what is the maximum earnings level at which the total amount payable in working families tax credit would exceed the total amount payable in income tax and employee and employer national insurance contributions for each of the following family types (a) married couples with a (A) one child at secondary school, (B) one child at secondary school and one child at primary school and (C) two children at secondary school and one child at primary school and (b) a lone parent with (1) one child at secondary school, (2) one child at secondary school and one child at primary school and (3) two children at secondary school and one child at primary school assuming (i) no childcare expenditure and (ii) childcare expenditure at the average level for those with childcare expenditure. - Inc table and figures. (Holding answer 14 December 1998).
Answer

Mr. Webb: To ask the Chancellor of the Exchequer what is the maximum earnings level at which the total amount payable in Working Families Tax Credit would exceed the total amount payable in income tax and employee and employer national insurance contributions for each of the following family types (a) married couples with a (A) one child at secondary school, (B) one child at secondary school and one child at primary school and (C) two children at secondary school and one child at primary school and (b) a lone parent with (1) one child at secondary school, (2) one child at secondary school and one child at primary school and (3) two children at secondary school and one child at primary school assuming (i) no childcare expenditure and (ii) childcare expenditure at the average level for those with childcare expenditure. [63416] Dawn Primarolo: [holding answer 14 December 1998]: Any family with children with someone working full-time will not have any net income tax to pay on earnings under £220 a week. Figures for a single earner working at least 30 hours who is paying national insurance contributions at the contracted-out rate and with no childcare expenditure are given in the table. The figures apply to both couples and lone parents. _________________________________________________________________________________________________. Maximum weekly earnings at which the total amount of Working Families Tax Credit exceeds income tax and employee and employer national insurance contributions for 1999-2000 (£) (A) 1 child aged 11-15 195 (B) 1 child aged 11-15 and 1 child aged under 11 214 (C) 2 children aged 11-15 and 1 child aged under 11 241 _________________________________________________________________________________________________. Note: Estimates of the average expenditure on childcare are not available, and hence it is not possible to give equivalent figures assuming average expenditure on childcare.

Secondary information

Type
Written question
Reference
63416; 322 c752-3W
Session
1998-99
Subjects
Children Income tax National insurance contributions Primary education Lone parents Secondary education Working families tax credit Earnings limits
Contains statistics
Yes