The factors which may influence the decisions of unemployed persons to take up such employment as may be available are several and I do not accept that the tax system is, by any means, among the more important. The general exemption limits which exempt a large number of low paid workers from paying income tax have been increased substantially in recent years. The child additions to the exemption limits which were introduced in 1989 have also been increased substantially. An example of these improvements is the fact that a married couple with four dependent children can now earn £9,000 before paying income tax compared to £5,500 in the 1988-89 tax year.
The Deputy will of course be aware that Government policy is to remove the low paid, especially families from the tax net.