By Robyn Hall. . The Government has stepped up its New Deal campaign with the launch of the disabl...
By Robyn Hall.
.
The Government has stepped up its New Deal campaign with the launch of the disabled person's tax credit.
Chancellor of the Exchequer Gordon Brown said that the introduction of the tax credit would not only make work pay but increase employment opportunities for disabled men and women.
He said: "With the introduction of the tax credit we are seeking to re-establish the right to work that disabled men and women should have. We know that there are a million disabled men and women who want to work and this will make it worthwhile.
But David Willetts, Shadow Secretary of State for Social Security, accused the Government of saying one thing and doing another.
He said: "On the one hand they claim they want disabled people to work and introduce a 'tax credit' aimed at helping them. Yet on the other hand they are proposing to penalise disabled people who have worked and tried to save for their retirement by means-testing incapacity benefit for the first time.
The new initiative guarantees a minimum income of £230 for a one-child family with someone in full-time work, and at least £80 for couples and £120 for lone parents more than the family would get on benefits. A family with two young children earning £13,000 will be £2,500 £45 a week better off.
Although the facility has been available since 5 October, Social Security Secretary Alistair Darling denied the 26 October launch date of the tax credit was an attempt to put a 'positive spin' on the Welfare Reform and Pensions Bill, which was due to go to its third reading in the Lords the following day.
Earlier this month the Bill suffered a series of defeats in the House of Lords. Peers voted by 251 to 95 against Government proposals to deny incapacity benefit to disabled people who had not worked for two years before claiming.
At the time, disability rights campaigner Lord Ashley of Stoke, who tabled the amendments, said: "This was a striking result with a remarkable majority. The consequence must be that the House of Commons will be under an obligation to reconsider the clauses in the Bill.
But Darling denied that the launch date had been timed to get the first foot in during the resulting Commons debate on disability benefits, widows pensions, IR35 and annuities which is scheduled for the week starting 1 November.
Ray Milne, managing director of Guardian Employee Benefits, doubted whether the take-up rate for the disabled persons tax credit would be enough to jolt the employee benefits market.
He said: "It is good to see job opportunities opening up for the disabled, but I doubt whether the disabled persons tax credit will impact on the employee benefits market at all.
A spokesperson for the Association of British Insurers said: "Reform of the Welfare State opens up opportunities for insurers and for new products.
