The government's welfare and tax policies will punish families, says TUC

date: 2 April 2013

embargo: For immediate release

Responding to today's (Tuesday) speech by the Chancellor George Osborne, in which he defended the government's benefit and tax changes, TUC General Secretary Frances O'Grady said:

'The Chancellor is living in a dream world if he thinks that slashing vital benefits and tax credits will help families get on.

'His remarks show how out of how out of touch he is with the struggles facing low and middle-income households who are suffering a range of benefit cuts at a time when bills are rising and real wages are falling.

'If the Chancellor is really interested in making work pay he shouldn't be taking an axe to vital in-work benefits that many low-income workers rely upon.

'Mr Osborne is keen to play up the impact of the increase in the personal allowance. However, this is a policy that helps better off households more than it does those on lower and middle incomes and which does little to offset the damaging impacts of the VAT rise the Chancellor has already introduced.

'The chief beneficiaries of George Osborne's fiscal policy this month will be the wealthiest in our society who can look forward to a five per cent cut in the top rate of tax.'

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Alex Rossiter T: 020 7467 1337 M: 07887 572130 E: arossiter@tuc.org.uk