THE cost of family credit cash benefits to poor families in the North West has rocketed, leading Labour to claim that it makes the case for a minimum wage.

The benefit is paid to those families with at least one adult in work but who need extra support to stay above the bread-line.

The number of family credit cases in the North West has risen by 41,000 between 1990/91 and 1994/95 to 97,000 - an increase of 73.2 per cent.

In the same period, the average weekly payment has risen by £19.77 to £51.38 - an increase of 62.5 per cent.

And the total annual bill for family credit in the region has risen by £155 million from £88 million in 1990/91 to £243 million in 1994/95 - a rise of 176.1 per cent.

Over this period it has cost £802 million of benefit to support low income families.

Shadow employment minister Ian McCartney said that UK-wide family credit had cost a staggering £4.7 billion to top up the income of working families with children, equivalent to £188 for every one of the nation's 25 million taxpayers over the past five years.

The massive bill comes on top of the estimated £500 million a year paid out in other benefits including housing and council tax benefit as a consequence of low pay.

UK wide, the total family credit bill has gone up by 198.3 per cent with 83.5 per cent more families claiming the benefit in 1994/95.

Makerfield MP Mr McCartney said: "The benefit system should be helping people off welfare and into work, not allowing some unscrupulous employers to maximise profits by minimising wages and leaving the taxpayer to pick up the tab."

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