A week before George Osborne sets out his budget, an Opposition Day debate in the House of Commons on 1 July highlighted the importance of tax credits for millions of families in low paid work and urged the Government to think again before slashing them.
In Hornsey and Wood Green, there are 11,200 children in families who receive tax credits.
Catherine West MP said: “David Cameron and George Osborne still haven’t come clean about exactly what cuts to tax credits they are proposing. But with a hit list of £12 billion, it’s clear that low paid working families in Hornsey & Wood Green are in the firing line.
“There’s been a rise in low paid, insecure work over the last few years, so it’s no surprise that many families are struggling to stay above the breadline. Tax credits can make the difference between being able to pay the bills and put food on the table.”
“The Tories are failing to tackle poverty and even before these changes they’re missing targets to reduce child poverty. They need to think again before cutting this vital lifeline”
Across London, 67 per cent of families claiming tax credits are in work. Cuts will hit working families on the lowest incomes hardest, potentially taking more children below the poverty line. ?
The Opposition Debate on Tax Credits was called by Labour to highlight their importance to millions of low paid families. Labour’s motion for the debate read: “This House believes that working people should be given support and incentives to find employment and stay in employment; notes that, at a time when the recovery is still fragile for many, the impact of a significant reduction to in-work tax credits could increase hardship and undermine the importance of making work pay; believes that any meaningful effort to address the real causes of high welfare costs should tackle the underlying drivers of low pay, high housing costs and insecure working conditions; further notes that the threat of a £5 billion reduction to child tax credits would see 3.7 million working families lose an average of £1,400 a year in income; urges the Chancellor to guarantee that any scope for assistance in next week’s Budget is focused solely on those on middle and lower incomes.”