Tax Credit Cuts are "Damaging and Dangerous" says Graham Allen MP

Posted on 16 September 2015 (Permalink)

“The Government had the votes to win last night but I voted against the Tax Credits cuts that will hit 5,500 working families in my constituency. These families will lose an average of £1,000 a year. People in my patch are already struggling on low pay and under austerity measures, this will only make their situations worse. As a result, I voted against these changes” said Graham Allen MP for Nottingham’s most deprived areas in the North of the City.

“The Institute for Fiscal Studies (IFS) says “The increase in minimum wage can't provide full compensation for majority of losses of tax credit recipients. It’s arithmetically impossible” and Nottingham’s working class estates are proof of this.

Low paying employers receive the biggest welfare payments of all by Tax credits topping up poverty pay received by many employees, removing that will mean employers will have to either increase pay or sack more working people. So instead of supporting those in productive work we will all have to pay more out to keep people on the dole.

In the Summer Budget, the Conservative Chancellor, George Osbourne announced changes to Tax Credits which will have a damaging effect on over 3 million families across the country. His plan will mean that families will no longer be able to claim for their third child after 2017 and the eligibility threshold has been cut meaning people in work can claim much less. Conservative MPs voted in favour of these changes last night.

This is expected to leave most families worse off by an average of £1,000 according to the IFS.

“Over 11,000 or 75% of families in Nottingham North claim Tax Credits of one sort or another. Of those, roughly half are working families. We have one of the highest levels of people relying on Tax Credits to make ends meet and these cuts will be a hammer-blow to a lot of families in our area.”

“I know from the amount of letters and emails I have received that this is something that is causing worry and concern. The Conservative’s plan to replace welfare with higher wages is a con. The higher wages will not cover the cuts to Tax Credits which will cause more hardship for my constituents”.

“These changes are damaging and dangerous and I will be voting against these cruel policies”

Follow Graham on Twitter: @GrahamAllenMP