Living Standards Debate

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Department: HM Treasury
Monday 5th March 2012

(12 years, 2 months ago)

Commons Chamber
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David Gauke Portrait Mr Gauke
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I want to make a bit more progress.

That is also why we increased the child tax credit by £135, in line with inflation, which means that, by this April, it will have increased by £390 since May 2010. It is telling that the Opposition motion makes no mention of this Government’s plans to increase the personal allowance, no doubt because their last contribution to the debate on income tax for the low paid was the 10p debacle.

Glenda Jackson Portrait Glenda Jackson
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Will the Minister tell us how his Government are helping the poorest in our society? Hundreds of families in my constituency are going to lose working family tax credit and will not be able to increase their hours. They are facing the possibility of losing their homes because of the cap on housing benefit, and of losing services because of the cuts to local authorities. The people who are most dependent on such services are inevitably the poorest in our society, yet his Government seem quite deliberately to be attacking them, perhaps because they believe that there are no votes in that part of the country.

David Gauke Portrait Mr Gauke
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We believe there are a lot of votes in the hon. Lady’s constituency.

I was going through the things we have done to help the poor, but let me continue. What we have done with the personal allowance is a big step—helping working people, ensuring that work pays and lifting living standards for those on low incomes. That is why this Government have made increasing the personal allowance one of our key priorities in supporting low and middle-income families across the UK. In April 2012, we will make a £630 increase in the personal allowance, taking it £8,105, which, taken with the £1,000 increase in April 2011, will benefit 25 million taxpayers, taking 1.1 million low-income individuals out of income tax altogether. We note that the shadow Chief Secretary to the Treasury expressed her opposition to that policy just a few minutes ago.