'Working Tax Credit'

The Treasury this week announced that that 6600 families in South Shields are benefiting from Labour's new tax credits.

This means that in only five months since Labour introduced the tax credits system, 6600 families in South Shields are now getting the help they are entitled to.

The Labour Government promised to give more support to families with children through the new tax credits.

Today's figures show that we are keeping that promise with 5.8 million families nation wide benefiting from new tax credits. This means that in just five months, 95% of those who are eligible have taken up the tax credits. The old system of Family Credit was only claimed by 57% of eligible families.

New figures published this week show that 9.8 million children across the UK are better off as a result of the tax credits, and the most help is going to those who need it most, with one third of families in the lowest income bracket receiving the maximum credit.

These figures show that Labour is committed to helping ordinary, hard working families here in South Shields. The Government is succeeding in raising the incomes of thousands of families in our area, raising living standards and eradicating child poverty. Under the Labour Government, hard working families with low incomes are getting the support that they deserve.

The Conservatives did not support the Government's plans for the new tax credits which are making so many families better off.

So the choice is between supporting families or cutting the help that they receive; between making work pay or slashing the help for hard-working families; between extra financial help for nine out of ten families or tax cuts for the privileged few.

The Child and Working Tax credit system means that a two-wage couple working full time, earning the national minimum wage with two children will now receive £25 a week more than under the previous system. A family with two children, whose income is half the national average earnings, (around £14,300) receives over £40 per week in support, compared with £25 in 1998.

A single-earner couple with an income of £10,000 can receive around £30 more per week than under the previous system, and a student or student nurse with one child and no taxable income is better off by up to £38 per week.

These figures represent a substantial increase in living standards for families and children in our communities.

I want all families to get the money that they are entitled to, and I urge any families that think they might be eligible to contact the Inland Revenue and join the 6600 families already benefiting.