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proposed cuts, which the House of Lords has rejected, would slash the earnings level at which tax credits start to be withdrawn as wages rise, and hike up the rate at which they are taken away once earnings reach this threshold.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

Technical and Support Officers

Durham County Council
£30,024 to £33,699 p.a. (Grade 7) Pay Award pending
Do you have a passion for improving services, solving problems and making the most of technology?  If so, we want to hear from you! We're seeking two Spennymoor
Recuriter: Durham County Council

Technician

Durham County Council
Grade 6 £28,142 - £31,022 (Pay award pending)
WHAT IS INVOLVED?    Are you passionate about live events, theatre, and bringing unforgettable experiences to life? We're looking for a Technician to Durham
Recuriter: Durham County Council

Welfare Rights Officers

Durham County Council
£35,412 to £39,152 p.a. (Grade 9) Pay Award pending
An exciting opportunity has arisen within Durham County Council for two Welfare Rights Officers, on a two-year fixed term basis. WHAT IS INVOLVED? Th Spennymoor
Recuriter: Durham County Council

Waste Recycling Non HGV Driver Chargehand

Durham County Council
Grade 6 £28,142 - £31,022 per annum (Pay award pending)
Are you an experienced driver with strong leadership skills? We’re looking for a Non-HGV Driver Chargehand to join our Waste and Recycling team. In t Peterlee
Recuriter: Durham County Council

Senior Instructor - Essex Outdoors

Essex County Council
£26840.0000 - £31576.0000 per annum
Senior Instructor - Essex Outdoors Mersea and Essex Outdoors HarlowPermanent, Full Time£26,840 to £31,576 per annumLocation
Recuriter: Essex County Council
Linkedin Banner