Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, if he will make an assessment of the implications for his policies of the statement by the Institute for Fiscal Studies that increases in the minimum wage will not fully compensate for changes made to the tax credits system.
As a result of the introduction of the National Living Wage, 2.75m workers are expected to benefit directly, and up to 6m could see their pay rise as a result of a ripple effect up the earnings distribution.
Overall, 8 out of 10 working households will be better off in 2017-18 as a result of the Summer Budget increase to the income tax personal allowance, welfare changes, and introduction of the National Living Wage. This translates to 12.5 million working households who will be better off.