Tax credit changes will hammer thousands of families in Haringey

HLD

14,300 families in Haringey will lose out under plans recently announced by the Conservative Government to cut tax credits.

The change will mean a total loss of £16,950,000 to families in Haringey with the average family losing £750 a year.

Figures produced by the House of Commons Library show that across London 372,900 families will lose out as a result of the changes to tax credits. Low-income working families currently in receipt of tax credits will see their entitlement reduced, as part of the Conservative Government’s proposals.

Despite claims from the Conservatives that those affected will benefit from plans to increase the minimum wage, the independent Institute for Fiscal Studies has said Tory figures don’t stack up.

The IFS analysis shows a £750 average loss will only be offset by £200 as a result of the new minimum wage.

The Liberal Democrats have opposed the move and said it undermines the work of the Coalition Government, to make sure it always pays more to be in work than on benefits.

Cllr Gail Engert, Haringey Liberal Democrat Leader of the Opposition, comments:

“The changes to tax credits will hammer families in Haringey. The change to tax credits completely undermines any claim the Conservatives have of being on the side of working families.

“What makes this even worse is that 22,900 children in Haringey will now be forced to live in poorer households, reducing their life chances and making it harder for their parents to make ends meet.

“Study after study have shown that the Conservative’s claim to be supporting low income families through a minimum wage increase nowhere near make up for these cuts. It’s time for them to come clean and be honest with those doing the right thing and going out to work.

“I am pleased that Lib Dems nationally are opposing the cuts to tax credits. We fought hard in the Coalition Government to ensure that work would always pay more than benefits. It is a disgraceful that the Conservatives are now undermining this good work.”

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