Tax Credits

Jim Cunningham Excerpts

Thursday 29th October 2015 Commons Chamber

[Jenny Chapman]

That will probably end up being one of the quotes of the day. That is a good way of putting it.

I am speaking on behalf of the 7,200 families in my constituency who care for the 3,900 children who will lose out as a result of these changes. When the Government bring forward whatever ideas they come up with to mitigate the impact, we must have the information that we need to assess whether they will be effective.

My right hon. Friend the Member for Birkenhead outlined what data he would like to see. I would like to see a regional distribution, because I suspect that communities such as the one I represent, where wages are low, will be impacted more heavily than other parts of the country. I am also interested in the gender impact of the changes. I would like to see how much debt the Government believe is being serviced by incomes that are in part made up of tax credits. I suspect that mortgages, car loans, credit cards and other personal debts are being repaid on the back of tax credits.

[Mr Jim Cunningham (Coventry South) (Lab)]

The problem is actually worse because there are people, particularly women, on zero-hours contracts who cannot get tax credits. What does my hon. Friend think about that?

[Jenny Chapman]

My hon. Friend makes a good point. It is for Ministers to respond to that intervention and I look forward to hearing the reply.

This debate is about children. It costs an enormous amount to raise a child, as many of us know from personal experience. I have read that it can take between £100,000 and £150,000 to raise a child. Child benefit meets only about 10% or 15% of that cost for people who claim it. Tax credits are a contribution from the state towards the cost of raising children.