Government should come clean on the impact of tax credit cuts, says TUC

26 October 2015

Commenting on the debate and vote expected this evening (Monday) in the House of Lords on the government’s plans to cut tax credits, TUC General Secretary Frances O’Grady said:

“The government should come clean about the devastating impact these cuts will have on the incomes of millions of working families.

“The Prime Minster should listen to the Lords, many of his own MPs and millions of worried families, and finally accept he’s got it wrong.”

NOTES TO EDITORS:

- The Prime Minister has claimed that the losses from his government’s tax credit and Universal Credit cuts will be compensated for by a higher minimum wage and a more generous income tax personal allowance. However, recently published analysis commissioned by the TUC has found that the average losses from tax credit cuts for families in the middle and at the lower end of the income spectrum will greatly outweigh any gains. While the tax credit cuts hit next year, the minimum wage will not reach £9 until 2020; and the tax allowance will not reach £12,500 until 2020 either. And even when families get the full gains in 2020, they will still be hundreds of pounds out of pocket from the net effect of cuts to in work support. Full details of the analysis can be found at www.tuc.org.uk/economic-issues/public-spending/britain-needs-pay-rise/social-issues/new-analysis-proves-prime

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