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Dawn Primarolo: I do not think the right hon. Gentleman could have been listening when I said that 3.2 million people are already being paid, or are about to be paid because they are paid monthly. An additional 1.3 million people are receiving their money because they are on income support or JSA and receive the increased payment. That leaves the claims that have been submitted to the Inland Revenue in the past weeks and months and need to be cleared as quickly as possible. I said in my statement that we had received more than 1 million claims since the beginning of March. I told the House that for those applications that the Inland Revenue had received by last Friday, the families would be paid by next week, unless there are outstanding inquiries about the details on the form that must be clarified to ensure that the families get the right amount. Where there are difficulties, interim payments can be made.
Roger Casale (Wimbledon): I thank my right hon. Friend for her statement and congratulate her on introducing, in the face of such visceral and at times hysterical opposition from the Conservatives, a measure that will bring such substantial financial benefit to people on low incomes, especially those with families. May I press my right hon. Friend on the steps that she is taking to increase take-up among middle-income families with children? I am sure she will agree that that is one of the most attractive aspects of the scheme. Having spoken to families in my constituency, Wimbledon, I know that they fully intend to take up the tax credit, which they see as an entitlement and a right, not as some kind of hand-out. They see it as a mark of having a stake in our society and being included—unlike the old system, under which they were stigmatised by being left out.
Dawn Primarolo: I can confirm to my hon. Friend that the Inland Revenue will continue to increase the take-up of the new tax credits beyond the 4 million existing claims. To that end, advertising will continue, to remind those who do not know about the tax credits that if they
put in their claim now, it can be backdated to 6 April. So as well as the 4 million claims that we have received, and the 1.3 million people on income support and JSA who are already receiving the payments directly, we will continue to run a take-up campaign to ensure that all those who are eligible submit an application and that it is processed speedily.
Mr. Roger Gale (North Thanet): I start by offering a bouquet not to the Paymaster General, sadly, but to those in her private office who over the Easter period took a great deal of trouble to sort out the cases of two families in my constituency who were nine parts destitute as a result of the introduction of the scheme and the fact that, on the one hand, money had been cut and, on the other hand, money had not been received. What concerns me is that there are scores of families in that position, who have had benefits reduced, while they are waiting for other moneys to come in.
Before Easter I tabled a parliamentary question asking the Paymaster General if she would tell the House when employers could expect to receive all the information that they need to help with the implementation of the scheme. So far, that question has not been answered. Do the employers now have the information that they need to do their bit of the job?
Dawn Primarolo: If the hon. Gentleman tabled a question that has not been answered—I thought they all had—I apologise to him. I will ensure that he gets the reply, which I shall give now, as he put the question directly to me. I thank him for his compliments to my private office. That reflects not only on the civil servants in the private office, but on staff throughout the Inland Revenue, who have moved heaven and earth to ensure that where interim payments should have been made, they were made. As I said, I deeply regret the fact that some families faced great difficulties. Those needed to be put right speedily to ensure that they get the service to which they are entitled.
With regard to the payment of the working tax credit, which will eventually be paid through the employer, but currently will be paid directly to the individual concerned, it will follow exactly the same route as the old working families tax credit. Employers asked for a 42-day lead-in time. I will check the number of days, but it is approximately that. The Inland Revenue will pay directly first, in instalments two-weekly to the claimant, and when the employer is able to put the tax credit on to the payroll, it will be paid through the wage packet. All that has been negotiated with employers. The software is in place, but the initial payment comes from the Inland Revenue to give employers time to set up their payrolls. That is exactly the same as working families tax credit and disabled person's tax credit, which worked very well.
Mr. Michael Connarty (Falkirk, East): I commend my right hon. Friend and the Chancellor for introducing the tax credits because they are logical, they make sense and they help families. I urge her not to give an inch to the Conservative prophets of doom and the moaning Minnies on the Liberal Benches and to forgive the previous Conservative Chancellor. He did not get a computer system right during his whole term in office
and obviously does not understand that if a computer system is right weekly payments can be made with ease—it is called modern technology.Will my right hon. Friend take into consideration several cases from my constituency? A parent with a minimal income is still waiting for a weekly payment, although it is now 22 days since it should have been made, meaning that great hardship is occurring. A gentleman, whom I shall not name because he is a reporter for my local newspapers and may be listening for a reply, applied in October. He was phoned by the Inland Revenue in October and answered an outstanding question. He is still to be notified of how much he will receive. He has said that he does not know what he will do with his monthly budget if he does not receive payment by the end of the week. How may he and my other constituent apply for the interim payments that my right hon. Friend mentioned?
Dawn Primarolo: I agree with my hon. Friend: Opposition parties opposed both the introduction of the new tax credits and increased payments to families. They were the merchants of doom, proclaiming that take-up would be low. The tax credits are enormously popular and take-up is high. Opposition Members now thrash around and try to create illusionary figures about outstanding payments.
Of course, getting money to the families concerned must take priority over any other process. I am deeply sorry to hear about the difficulties that my hon. Friend's constituents—especially the journalist—experienced getting a reply on the matter. I shall ensure that that will be examined as quickly as possible, as I have done with all hon. Members' points that have been raised with me and my office.
A claimant family may apply for an interim payment to the Inland Revenue inquiry centre. People who are clients of Jobcentre Plus—I doubt that that will apply to a journalist—may apply directly to Jobcentre Plus, which has facilities to make an interim payment if necessary. If my hon. Friend or other hon. Members experience further difficulties, I am sure that they will not hesitate to get back to me.
Annabelle Ewing (Perth): It is a pity that the Paymaster General has not taken the opportunity to recognise that the introduction of the system has been a shambles and that it has left some of the most vulnerable people in our society high and dry. I telephoned the MPs hotline today. I was offered an apology, but that will not pay my constituent's bills that fall due on 1 May. Surely it is evident that a significant number of people have not received the service that they were entitled to expect, so why will the Paymaster General not give an unequivocal guarantee that those people will receive compensation?
Dawn Primarolo: Forgive me if I am wrong, but I think that the hon. Lady said that her constituent's payment falls due on 1 May. Today is 28 April, so if her constituent is due to receive a monthly payment, it will be paid this week. [Interruption.] Hon. Members should listen to what I say rather than asking questions regardless. If a claimant has not received a weekly payment that should have been made, he or she will be
entitled to an interim payment. I have explained to the hon. Lady, as her constituent's representative, how that can be done. One of the biggest issues about the helpline has been the huge volume of calls, which has frustrated some claimants and prevented them from making contact. We responded by providing 700 new advisers for the helpline and the number of calls is falling. It is a priority to ensure that families such as that of the hon. Lady's constituent receive the money to which they are entitled. She can certainly give me her constituent's details.
Mr. George Foulkes (Carrick, Cumnock and Doon Valley): Does my right hon. Friend agree that it is predominantly Labour Members' constituents who are relying on the extra payments for their basic needs? We have deep concerns about any delays and we have raised them with my right hon. Friend, her colleagues and the Inland Revenue. I thank her for her apology to people who have been badly affected by the arrangement—she has repeated it twice today—and for her announcement of all the improvements and additions. While listening to the shadow Chancellor and the Liberal spokesman, it occurred to me that they had written their speeches without reading about all the improvements. Of course it is a pity that Mr. Bridges, the shadow Chancellor's constituent, has to wait for his money, but at least he will get it. If the shadow Chancellor were Chancellor, he would not receive it. Is it not astonishing, outrageous and incredible that we are hearing such criticism from Opposition Members when we are putting thousands of pounds into people's pockets—
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