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proposed cuts, which the House of Lords has rejected, would slash the earnings level at which tax credits start to be withdrawn as wages rise, and hike up the rate at which they are taken away once earnings reach this threshold.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

Administration Officer

Durham County Council
Grade 4 £25,583 - £26,824 Pro-rata
WHATS INVOLVED A vacancy has arisen within Business Services for a temporary Administration Officer. You will provide a comprehensive, robust adminis Spennymoor
Recuriter: Durham County Council

Registered Homes Manager

Durham County Council
Grade 14 £50,269 - £54,495 plus £2,500 recruitment/retention allowance and £3,500 market supplement. The salary with additional payments equate to an earning potential per annum of £60,495 at the top of the grade.
Registered Manager – The Beacon Salary
Recuriter: Durham County Council

Cleaner

Durham County Council
£24,796 pro rata
Cleaner  Full time, 37 hours per week, term time only. Salary Grade 1 (£24,796 pro rata)  Permanent subject to a successful probationary period. Requi Durham
Recuriter: Durham County Council

Operations Manager

Durham County Council
Grade 10 £38,220 - £41,771
Help launch County Durham’s newest cultural landmark. Opening in summer 2026, The Light will bring together art, science, history, creativity and com Durham
Recuriter: Durham County Council

Travel Planning Officer

Durham County Council
Grade 9 - £35,412 to £39,152
We have an opportunity available as a Travel Planning Officer to join our Integrated Passenger Transport Team.   WHAT IS INVOLVED? You will work with Durham
Recuriter: Durham County Council
Linkedin Banner