New figures from the Institute for Fiscal Studies show that families with children will lose an average of £511 a year from changes to tax, benefits and tax credits being introduced from today.
Over 850,000 families on modest and middle incomes will lose all of their Child Tax Credit – worth around £545 per year. And up to 212,000 working couples earning less than around £17,000 per year will lose all of their Working Tax Credit – worth up to £3,870 per year – if they cannot increase their working hours.
That’s up to 1 million families with much-needed tax credits taken away completely.
Perversely, a couple with two children on the minimum wage will be better off quitting their jobs if they cannot work at least 19 hours per week.
And this is on top of tax rises already introduced by the Tory-led government, like last year’s VAT rise – which is costing a family with children an average of £450 per year.
Shadow Chancellor Ed Balls called the changes
a bombshell from David Cameron and George Osborne:
Why are people earning over £150,000 soon to get a £3 billion tax cut from this out of touch Government while parents on middle and modest incomes are being clobbered?
It cannot be the right priority to make millions of families and pensioners pay more so millionaires can pay less – over £40,000 less in the case of the 14,000 richest people in the country.
It is no wonder that the Chancellor cannot bring himself to say the words ‘we’re all in this together’ again. His empty slogan has been exposed by the reality of his policies which are hitting women harder than men and hitting families with children hardest of all.