The Working Families Tax Credit, which boosts the income of low and middle earning families and provides help with childcare costs, is the financial engine of New Labour's drive to get families off benefits and into work. But after 18 months and with a general election looming, is it working?
A glance at the bald facts indicates a cautious yes. According to the latest Government statistics there are 1,168,000 families claiming WFTC, of whom the majority (602,000) are lone parents. About a quarter of WFTC recipients work in personal and protective services, including health and childcare as well as cleaners, and 129,000 families claim its childcare tax credit element at an average value of 35.10 per week. An Inland Revenue spokesman says, 'The number of families receiving support with childcare costs has increased by 174 per cent since WFTC was introduced in October 1999, but we have no way of estimating how many other families could be eligible.'
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