Treasury Secretary Damian Hinds led the Tories in the House of Commons last week in a spirited defence of the government’s plan to axe tax credits. He gave full vent to the Chancellor’s claim that reduced tax credits make sense as part of a full package, which includes what the Tories falsely call a national living wage, increased personal tax allowances and rising employment.
Hinds insisted that 80 per cent of households will be better off by 2017-18. However, he was forced to concede that this applies to 80 per cent of all households – not 80 per cent of the working poor who are the victims of this cruel policy that David Cameron specifically ruled out prior to the general election.
Nor could he explain how a marginal rise in statutory wage levels – whether called a minimum or living wage – or higher tax allowances might compensate families experiencing an immediate annual reduction of up to £1,300 in their income.
Even accepting the Treasury Secretary’s figures, this would mean that 20 per cent of households will suffer. These 3.5 million low-income families, 2.7 million of which have children, will be hard up against it.
The People’s Assembly is asking as many people as possible to get in touch who are being directly affected by cuts to Tax Credits.Contact them via the People’s Assembly website.