Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, with reference to the Hartz Reforms on employment in Germany, what support his Department provides to people in marginal employment in the UK.

A key purpose of the Hartz reforms was to increase flexibility in the German labour market and reduce tax pressures on low-paid and temporary workers. It helped Germany stop a long-term increase in unemployment.

The UK unemployment rate currently stands at 4.3%, a 42 year low. The UK ranks very well internationally on labour market flexibility. It is a key strength of our economy and has played an important role in achieving the near record employment levels that we currently enjoy.

We also exempt many low-paid jobs from income tax. This government has increased the personal allowance, and as a result, 1.2m individuals will be taken out of income tax altogether by 2018-19 compared to 2015-16.

We are also introducing Universal Credit, a long overdue and necessary reform. It responds dynamically to changes in income and ensures that it always pays to work more.