Member Article

Calls to postpone working tax credits change

Campaigners are calling on the Government to postpone changes to working tax credits, fearing that some people will be significantly worse off.

Changes to the tax credits threshold for families with children from 16 hours to 24 hours of work a week, will leave couples with children with a marked income drop.

The lowest income families stand to lose £3,780 a year due to a crackdown on low-paid, part-time workers.

Newcastle North MP Catherine McKinnell warned that in her constituency along, 1,255 people will be “plunged into poverty” by the measures.

The shadow children’s minister said: In today’s economy, part-time workers are going to find it extremely difficult, if not impossible, to negotiate the eight extra hours a week to keep their working tax credit.

“And the potential loss of over £75 a week is a crippling amount for any family, let alone the poorest.

When challenged by Mrs McKinnell, during Question Time in the Commons, Treasury Minister Chloe Smith, said there was plenty of opportunities for people to take on extra hours.

Mrs McKinnell added: “To accord with reality - something I suggest the Minister should get back in touch with - how does the Government intend to reduce the unfairness of the rule change?

Alison Garnham, chief executive of Child Poverty Action Group, said: “This will pull the rug from under the feet of hundreds of thousands of families desperately trying to make ends meet.

“It’s shocking how many children in some places are going to be hit by this change and inevitable that many will be thrown into poverty.

“Just imagine how hard it will be on low pay, with low hours and with kids to take care of when suddenly up to £70 a week gets taken away.

“It’s not like it was these families who caused the economic crisis, so why does all the austerity have to land on them?”

Mrs McKinnell also commented on parents being required to fund extra childcare for their children as a result of the rule change.

She said: “A key decision for any parent, but particularly those on lower-incomes, is whether work pays once the cost of childcare has been taken into account.

“At a time of rising childcare and other costs of living, reduced wages and, for some, reduced hours, how is the Government going to help cash strapped families afford the additional costs of childcare that the rule change will bring?”

She went on to warn the effect of the rule change on reducing the deficit represented a short-term fix, while the consequences of deprivation, debt and unemployment will be passed down the generations.

This was posted in Bdaily's Members' News section by Tom Keighley .