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proposed cuts, which the House of Lords has rejected, would slash the earnings level at which tax credits start to be withdrawn as wages rise, and hike up the rate at which they are taken away once earnings reach this threshold.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

Senior Highways Inspection Officer

The Royal Borough of Windsor & Maidenhead
£39,526 - £43,613 per annum.
We have an exciting opportunity for a Senior Highways Inspection Officer to join us! Maidenhead, Berkshire
Recuriter: The Royal Borough of Windsor & Maidenhead

Co-ordination Support Officer

Wakefield Council
Grade 5 SCP 8 £26,824 - SCP 11 £28,142
Do you have excellent business administration skills with an interest in working in Adults Social Care? Wakefield, West Yorkshire
Recuriter: Wakefield Council

Engineering Team Manager (Transportation)

Calderdale Metropolitan Borough Council
Special A Grade, SCP 42-45, £53,460 - £56,732 per annum
Lead the way. Shape Calderdale’s transport future. Calderdale, West Yorkshire
Recuriter: Calderdale Metropolitan Borough Council

Social Worker Care Co-ordinator

Durham County Council
£35,412 - £39,152 (pre-progression) / £40,777 - £45,091 (post-progression) pro rata pa
We are seeking a dynamic and motivated Social Worker who places young people at the centre of their practice. This is an exciting opportunity to make Spennymoor
Recuriter: Durham County Council

Accommodation Officer

Durham County Council
Grade 7 £30,024 - £33,699
Are you passionate about preventing homelessness and making a real difference in people’s lives? As an Accommodation Officer in our Independent Livin Seaham
Recuriter: Durham County Council
Linkedin Banner