| Previous Section | Index | Home Page |
10 Apr 2003 : Column 498—continued
PETITION
New Station (Golborne)
6 pm
Andy Burnham (Leigh): Golborne is a former pit village in my constituency and in that of my right hon. Friend the Member for Makerfield (Mr. McCartney). It stands at the crossroads of the north-west; indeed, it is hard to imagine a more strategic location. Nestled in the corner of the M6 and the east Lancashire road, next to Haydock racecourse, the town stands at the confluence of Greater Manchester, Merseyside and Cheshire on the historic Liverpool to Manchester route, yet, unbelievably, the area is the most poorly served by rail in the whole of the north-west. It bore the brunt of Dr. Beeching's axe, leaving nearby Leigh, the largest town in England, without a railway station, and Golborne stranded. People used to work locally, but with the closure of the pits and the loss of other local jobs, Golborne, Lowton and Ashton have become commuter areas. Many people have moved into the area to its new housing estates, but have no choice other than to get into their cars and join the queues on the east Lancashire road. Golborne is crying out for a station, which would be the catalyst for its wider regeneration.
This petition, unlike many others, has Cabinet backing. My neighbour, my right hon. Friend the Member for Makerfield, and I live in Golborne and Ashton. We can assure the House that the 1,800 people who have signed our petition—neighbours and friends, as well as constituents—would use a station if they were given one.
- To the House of Commons.
The petition of residents of Golborne, Lowton, Ashton and the surrounding districts
Declares that a new railway station in Golborne, Greater Manchester, would enhance the quality of life for residents in Golborne, Lowton, Ashton and the surrounding districts and would make public transport accessible for both business and pleasure.
The petitioners therefore request that the House of Commons urge the Government, the Strategic Rail Authority, the Greater Manchester Passenger Transport Authority and others concerned to take steps to provide a new railway station in Golborne.
And the Petitioners remain, etc.
Tax Credits (Scotland)
Motion made, and Question proposed, That this House do now adjourn.—[Mr. Sutcliffe.]
6.2 pm
Ann McKechin (Glasgow, Maryhill): This month marks one of the biggest-ever reforms of the Inland Revenue and the Benefits Agency, with the introduction of a new tax credits system for low-paid workers and people with families. It represents a comprehensive sea change in the way in which people are taxed on their income by recognising that everyone who is in work or bringing up children contributes to building a stronger economy and a stronger society, and that we should assist those who, at different times of their lives, are in need of additional support.
Since being elected in 1997, the Labour Government have worked progressively to reform taxation policies to support workers and families. In particular, they have introduced measures to help people into work and to make work pay, and at the same time they have given more help to families when they are bringing up their children. Such measures are, of course, integral to the Government's agenda of halving child poverty by 2010 and setting ourselves the ambitious target of eradicating child poverty within a generation. In a modern society, extending opportunity for all children and ensuring that people's life chances are no longer unfairly determined by their childhood circumstances is not only morally right but essential to a strong economy and society.
In their first Parliament, the Labour Government introduced the working families tax credit, the disabled persons tax credit and the children's tax credit. Those measures have already made a substantial difference for many low-paid workers throughout Scotland, together with other fiscal measures such as the introduction of the 10p rate of tax, increases in child benefit and the reduction in the standard rate of income tax. Since 1997, families with children are, on average, £1,200 per year better off as a result of those measures. As a result of the targeting of our reforms, households in the poorest fifth of the population are, on average, £2,400 per year better off in real terms.
I am pleased that the Government are now able to offer a much more sophisticated and targeted system of assistance, and I know how much effort my right hon. Friend the Paymaster General has expended in the past few years to bring those plans into effect. She and her staff are to be congratulated on that real achievement in fiscal reform.
The new tax credits introduced this month are an attempt to build on the successes of the original system in order to offer a better system of support for families and people in work. I welcome particularly the move to pay the new child tax credit to the main carer, normally the mother, rather than to the principal household wage earner. I am also delighted that, for the first time, eligibility for the new tax credits is being extended to thousands of people who were previously excluded, such as student nurses and low-paid workers without children. In fact, I understand that the Government have estimated that more than 5 million families will benefit from the new child tax credit alone, compared with 2.5 million under the old scheme. As I represent
part of a city in which the largest income bracket is £10,000 to £14,000, I know that that will make a real difference to thousands of our citizens.Recently, I held a roving surgery in my own constituency to promote the new system, and I met a disabled woman who was working part-time and had no children who will be approximately £3,500 a year better off with the new tax credits. Another constituent whom I met, however, who was in a low-paid job and had a two-year-old daughter, will be better off by approximately £2,500 a year due to a combination of both the working tax credit and the child tax credit. I was genuinely surprised and delighted at the generous support that the scheme provides, and I know that my constituents were just as pleased.
As my right hon. Friend will be aware from recent press reports, however, it is currently estimated that only 3 million of the 5 million families in the UK entitled to the new tax credit have completed and returned their forms. I am concerned to ensure that, in Scotland, we are able to maximise the take-up rate. Only this week, the Child Poverty Action Group, while welcoming the launch of the scheme, expressed concern about the relatively low take-up and asked the Government to continue their present campaign. From speaking to my constituents, I know that many are still unaware that they may be eligible for benefits offered by the new reforms. Although I appreciate that those who were under the old working families tax credit scheme have received application forms automatically, my right hon. Friend will know that the new system widens substantially the net of beneficiaries. As employers are no longer involved in processing the administration of tax credits, little or no information is being disseminated at places of employment among the small and medium-sized enterprise employers. That, however, is where a large percentage of potential applicants such as women and the low-paid work. Is there any way in which information can be distributed through the place of employment, perhaps based on the Inland Revenue's records, which will show potentially low or lower-paid work forces.
I appreciate the sophistication and extent of the television and press advertising in recent months, including the targeting of women's magazines, and that is certainly a big help in encouraging a positive level of claims. Clearly, however, more work in this direction is required, and possibly for a much longer, sustained period so that the message gets through to all parts of our communities. Has the Minister considered further advertising in the local and free press, together with advertising on local radio stations, particularly as evidence suggests that that is where most women or low-paid workers obtain access to news and information? Has the Minister or her staff made any contact with local authorities in Scotland about how they can use their networks, particularly in schools and nurseries, to promote the scheme?
I have also met a considerable number of people who claim that they have received the forms but have still to complete them, and in their words, "haven't quite got round to it". Most seem unaware of the time limits: for example, that they needed to return the forms by the end of January to guarantee that their money would be paid in time for this month, or that they would lose money if they did not apply within the first three months.
That suggests a few problems. First, although I am sure that my right hon. Friend and staff at the Inland Revenue have made every effort to condense the application form to 12 pages, many people, particularly those with literacy problems, still find completing such a form, which is in fairly small print with a good number of boxes and a substantial amount of supplementary notes, a daunting prospect. Their first instinct is to gaze at it with perplexity, put it down and forget about it. My right hon. Friend will no doubt reply that, in most cases, applicants will be able to skip a good number of the questions, depending on their circumstances, but that is not necessarily as clear to every applicant when they look at the form.
Secondly, many people will start looking for last year's P60 and may realise that they have lost it or that their employer has failed to provide it. That starts the tortuous search for the duplicate and, again, frustration and a degree of confusion can result. Will staff issue reminder letters to those who have received application forms but who have still to return them, and will people be encouraged to make more use of the helpline assistance?
I was alarmed that a number of constituents have contacted my office in the past week to say that they are having substantial difficulty reaching the helpline number. My staff have phoned the number over the past couple of days and have repeatedly received a BT message that the call cannot be connected owing to the volume of calls. A number of other Members of Parliament have indicated that their constituents are experiencing similar problems in other parts of the country. Will the Minister comment specifically on what steps are being taken to tackle that problem, given that we are implementing the scheme this year?
Last week, I attended the annual conference of One Plus—a voluntary organisation based in the west of Scotland that does a huge amount of valuable work in assisting and providing training for sole parent families. Concern was expressed about take-up and, although people are aware that a tax credit scheme is in operation, their knowledge of its scale and detail is, probably understandably, fairly vague. Some of the rules of eligibility are quite complex.
For example, at the conference I met a woman whose 18-year-old daughter, currently a student, has just had a baby, and they both reside with her. She has been advised that she may be able to claim for tax credits as she is supporting her daughter and grandchild. A number of other women also spoke about the lack of any response so far from the tax office about their applications to confirm that their payments will be made. That highlights the need for a very high level of efficiency and support in the Revenue to ensure that the take-up of benefits is as high as possible and that payments are received on time.
Targeted benefits are always more difficult to administer, but I fully understand and support the Government's priorities. I have been impressed recently by the work of the new pension agency, which is checking its record base, identifying pensioners on low incomes and contacting them with information about their possible eligibility to enhanced benefits, such as the
minimum income guarantee. In fact, my mother was one of those who received such a letter last year. Is it possible for the Inland Revenue to conduct a similar exercise for those who may now benefit from the working tax credit, which is specifically intended to benefit low-paid workers?Will my right hon. Friend comment on the feedback that her officials have received about the current media campaign? Does she see merit in continuing the level of the current campaign to ensure wider take-up? In particular, has her Department considered any further measures to increase participation and to chase up those who, to date, have failed to return their forms to the Inland Revenue? Does she agree that more needs to be done to emphasise the three-month period to make sure that families and low-paid workers do not lose out on that important reform?
The new system is vital to our aims to ensure that all families and workers have a decent income and that we successfully combat poverty in Scotland and in society generally. Like my right hon. Friend, I am very keen to ensure that all those who are eligible to benefit in Scotland know how to claim and submit their applications to the Inland Revenue. The Government have made an enormous effort to get the scheme into operation. There are bound to be teething problems, as my right hon. Friend said earlier this evening, but I urge her and her colleagues to continue to work to allocate the necessary resources to ensure that the scheme is a real success.
| Next Section
| Index | Home Page |