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proposed cuts, which the House of Lords has rejected, would slash the earnings level at which tax credits start to be withdrawn as wages rise, and hike up the rate at which they are taken away once earnings reach this threshold.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

Transport and Major Work Manager

Slough Borough Council
£54,556 to £60,085 per year Inclusive of Local Weighting Allowance of £1096
Drive the future of transport and infrastructure in Slough Slough, Berkshire
Recuriter: Slough Borough Council

Senior Technician-Road Closures

Derbyshire County Council
Grade 10 £35,422 - £38,730 per annum
As a Senior Technician, you will be working alongside other technical experts to co-ordinate various activities in the highway. Derbyshire
Recuriter: Derbyshire County Council

Building Control Manager (Local Authority, Registered Building Inspector Class 3/4)

Kirklees Metropolitan Council
£57,457 - £58,462
Join Kirklees Council and help create safe, high-quality places for people to live and work. Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

ACL Senior Trainer - Supported Learning

Essex County Council
£33711.0000 - £39659.0000 per annum
ACL Senior Trainer - Supported LearningPermanent, Full Time£33,711 to £39,659 per annumLocation
Recuriter: Essex County Council

Highways Apprentice (Development Management)

Kirklees Metropolitan Council
£12.42 per hour
Start your career and help shape the future of travel in Kirklees Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council
Linkedin Banner