---

9 Jul 2003 : Column 874W—continued

Impoverished Families

Mrs. Curtis-Thomas: To ask the Chancellor of the Exchequer what the Government have done to help support impoverished families with children. [124211]

Dawn Primarolo: The Government have a PSA target to reduce by a quarter the number of children living in relative low-income households by 2004–05, as a contribution to its long-term goal to halve child poverty by 2010 and eradicate it by 2020. The latest data show that by 2001–02 the Government were around half way to this target in half the time.

As a result of personal tax and benefit reforms introduced since 1997, from April 2003, on average, households with children in the poorest fifth of the population will be £2,500 better off a year in real terms compared to 1997. This includes the effect of the child tax credit, introduced in April this year. Combined with child benefit, the child tax credit delivers up to £54.10 a week in support for first child, compared to £27.70 a week in April 1997.

New Deal

Mrs. Curtis-Thomas: To ask the Chancellor of the Exchequer what impact the New Deal programmes have had on (a) helping the long-term unemployed achieve a successful return to work, (b) supporting disadvantaged groups and areas that suffer from low levels of unemployment and (c) ensuring that individuals are rewarded in employment. [124209]

John Healey: The New Deal for Young People (NDYP), for 18–24 year olds, and the New Deal for those aged 25 and over (ND25+), provide comprehensive support for young and older long-term jobseekers. These programmes have helped to reduce both long-term and youth long-term unemployment by over three quarters since 1997. Almost 430,000 long-term unemployed 18–24 year olds have found jobs through NDYP, while ND25+ has helped more than 145,000 people back into work. Independent research has confirmed the positive impact of the New Deal, Chapter 4 of Budget 2003 (HC 500) provides further information

The Government has extended this approach to support groups that experience particular labour market disadvantage. The New Deal for over 50s, introduced nationally in 2000, has assisted nearly 94,000 people into jobs and has helped increase the employment rate of those aged between 50 and state retirement age to 69 per cent. (winter 2002) from 65 per cent. in 1997.

All lone parents who are not working or working less than 16 hours a week are eligible for a comprehensive package of support through the New Deal for Lone Parents, which has assisted nearly 194,000 lone parents into jobs and helped to increase employment among lone parents from just over 40 per cent. throughout the early 1990s to 54 per cent. (summer 2002). The New

9 Jul 2003 : Column 875W

Deal for Disabled People has helped nearly 9,000 people into work since its introduction in 2001—the employment rate of people with disabilities stood at 49 per cent. in summer 2002, up from 47 per cent. a year earlier.

The Government has also taken steps to provide further support for local areas with high levels of worklessness. Action Teams have been introduced in 63 disadvantaged areas of England, Scotland and Wales, focusing resources on the long-term unemployed and economically inactive and using these resources in innovative ways to overcome specific local barriers to work. Employment Zones in 15 areas of England, Scotland and Wales allow long-term unemployed people aged 25 or over and their personal advisers to use funds with complete flexibility to overcome individual barriers to work, and have helped over 28,500 people into work. Budget 2003 announced details of further steps to extend the help provided by Employment Zones more widely and to encourage innovation among providers. In addition, the 2002 Pre-Budget Report announced the Government's intention to pilot a programme of intensive support, including accelerated access onto the New Deal after just three months of unemployment, in 12 neighbourhoods with very high concentrations of worklessness from April 2004.

The Government's welfare to work policies have been supported by reforms to strengthen work incentives. The National Minimum Wage (NMW) provides fair minimum incomes from work, and will be increased to £4.50 an hour for adult workers aged 22 or over, and £3.80 an hour for workers aged between 18 and 21 or in approved training, from October 2003. The Working Tax Credit, introduced in April 2003, is designed to help tackle poor work incentives and persistent poverty among working people, providing support on top of the guarantee provided by the NMW. The table below demonstrates how the Government's reforms have increased the minimum income that people can expect when moving into work since the introduction of the NMW in April 1999 and the Working Families Tax Credit in October 1999, including through the increases in the NMW in October 2003.

£

	April 1999	October 1999	October 2003
Family 1 child, full-time work (35 hours)	182	200	241
Family 1 child, part-time work (16 hours)	136	144	184
Single person, no children, 25 or over, full-time work (35 hours)	113	113	158
Couples, no children, 25 or over—full-time work (35 hours)	117	117	187

Note:

Assumes prevailing rate of National Minimum Wage and that the family is eligible for the Working Families' Tax Credit and, from April 2003, the Working and Child Tax Credits.

Northern Ireland

Mr. Dodds: To ask the Chancellor of the Exchequer how much (a) income tax, (b) corporation tax and (c) value added tax was collected in Northern Ireland in the last financial year. [124367]

9 Jul 2003 : Column 876W

Dawn Primarolo: Information on income tax in Northern Ireland is available on the inland revenue website at www.inlandrevenue.gov.uk/stats/income distribution/pi t11 l.htm. No regional or country breakdowns for corporation tax or VAT are available.

Notes and Coins Working Group

Mr. Tynan: To ask the Chancellor of the Exchequer whether he intends to invite representatives of the Northern Irish and Scottish bank note issuing banks to join the Notes and Coins Working Group. [124264]

Mr. Boateng: The third Outline National Changeover Plan sets out the proposed approach to the management of a cash changeover in the UK, including the establishment of a Cash Changeover Working Group to replace the Notes and Coins Working Group, whose initial preparatory role would have been fulfilled.

Details of the principal aim of the Cash Changeover Working Group are contained in the third outline National Changeover Plan.

Physical Capital

Mrs. Curtis-Thomas: To ask the Chancellor of the Exchequer what steps the Government have taken to encourage investment in the stock of physical capital in industry. [124216]

John Healey: This Government are committed to encouraging greater levels of investment within UK industry. Investment is a key driver of productivity and is also key to raising competitiveness and long-run living standards.

Since 1997, the Government have introduced a number of macro- and microeconomic reforms aimed at building stability, boosting productivity and producing an environment conducive for investment for the long term, for example:

The R and D tax credit for both small and large businesses;


100 per cent. capital allowances for ICT expenditure and enhanced first-year allowances for all plant and machinery for small and medium-sized businesses;


Reduced corporation tax rates, including the small business rate of 19 pence, with OECD figures showing that the UK has one of the lowest tax burdens in the EU; and


Regional Development Agencies set up to promote efficiency, investment and competitiveness.

Pound Coins

Mr. Evans: To ask the Chancellor of the Exchequer what estimate he has made of the number of illegal pound coins in circulation in (a) 2000, (b) 2001 and (c) 2002. [122581]

Mr. Boateng: Estimates for each of the years requested are not available. An independent analysis commissioned by the Royal Mint has shown that, of a sample of one pound coins collected in late 2002, just under 1 per cent. were counterfeit. However, there is uncertainty as to the extent to which this sample can be regarded as a reliable indication of all coins in circulation. Anecdotal evidence suggests that the true figure may be lower.

9 Jul 2003 : Column 877W

Public Services

Mrs. Curtis-Thomas: To ask the Chancellor of the Exchequer what steps have been taken to deliver lasting improvements in public service delivery. [124197]

Mr. Boateng: The 2002 Spending Review committed significant additional resources to the public services, matched with reforms to deliver results.

SR2002 also set out Public Service Agreements (PSAs) for all main departments and HM Treasury and the Prime Minister's Delivery Unit are now working closely with departments to ensure the delivery of these key public service improvements.

Small Business (Tax Collection)

Mr. Norman: To ask the Chancellor of the Exchequer what the Treasury's revenue estimates are of Inland Revenue statutory receivables in arrears from businesses between (a) 0–30 days, (b) 30–60 days and (c) 60–90 days in the last tax year for which figures are available. [123256]

Dawn Primarolo: The Inland Revenue does not hold the age profile of debts as requested by the right hon. Member.

---