William Eichler 27 October 2015

Tax Credit cuts could see roadsweepers and care workers losing £2,000 per year

Roadsweepers and care workers could lose up to £2,000 per year as a result of the chancellor’s proposed tax credit cuts, according to new research from the Child Poverty Action Group (CPAG).

CPAG’s findings reveal 3.2 million low-paid workers — among whom are roadsweepers and care workers — would lose an average of £1,350 next year, with some losing over £2,000, should the legislation come into force.

The proposed cuts, which the House of Lords has rejected, would slash the earnings level at which tax credits start to be withdrawn as wages rise, and hike up the rate at which they are taken away once earnings reach this threshold.

CPAG estimates that nationally £4.4bn would be taken from low-paid families if the cuts are finally approved, with some keeping just 3p in every extra £1 they earn.

The charity’s calculations are for sole earners working full time, either single parents with two children or a sole earner in a couple-family with two children, and do not include the impact of other changes to tax and benefits.

However, the cuts are not, CPAG believes, offset by such other changes as the National Living Wage, rising income tax threshold or the free childcare offer.

They also claim that work incentives would be damaged and that there could be an increase in child poverty.

Alison Garnham, chief executive of CPAG, said: ‘These are grafting parents, often working long hours and trying to provide for their kids. And if you’re struggling now to pay for food, utilities, fares and your children’s clothing, these kinds of losses must make you fear for the future.’

‘The Government,’ she added, ‘has had the message loud and clear from right across the political spectrum: there isn’t a case for cuts that would target working families, increase child poverty and damage family security.’

SIGN UP
For your free daily news bulletin
Highways jobs

Service Director - Finance

Isle of Wight Council
£95,212 to £102,389
We need a talented and experienced Service Director of Finance to join us and play a pivotal role Isle of Wight
Recuriter: Isle of Wight Council

Strategic Director of Finance and Deputy Chief Executive (Section 151)

Isle of Wight Council
£120,536 to £129,500
Strategic Director of Finance and Deputy Chief Executive (Section 151) Isle of Wight
Recuriter: Isle of Wight Council

Service Director - Education

Isle of Wight Council
£95,212 to £102,389
This is a great time to join our Children’s Services senior leadership team as a Service Director for Education where you’ll provide system leadership Isle of Wight
Recuriter: Isle of Wight Council

Class Teacher (Primary)

Durham County Council
£32,916- £51,048
Primary School Class Teacher M1-UPS3 (£32,916  - £52,149) Permanent, Full-time Contract to begin in September 2026.   The Governors of this happy and Durham
Recuriter: Durham County Council

SEND Inclusion Partner

Essex County Council
£44258.0000 - £52068.0000 per annum
SEND Inclusion PartnerPermanentPart Time, 22.2 hours per week£44,258 to £52,068 per annum FTE, £26,554.80 to £31,240.80 per annum (pro rata)Location
Recuriter: Essex County Council
Linkedin Banner