Lib Dem anger at tax credit changes

Brighton and Hove Liberal Democrats claim Conservative plans to cut tax credits will affect 12,000 families across the city.

House of Commons Library figures show that nationally over three million low-income working families currently in receipt of tax credits will see their entitlement reduced as part of the Government’s proposals.

This will mean a total loss of around £10 million a year to families in Brighton and Hove, with the average family losing over £750 a year.

The independent Institute for Fiscal Studies (IFS) has rubbished claims from the Conservatives that those affected will benefit overall given the plans to increase the minimum wage.

IFS analysis has shown that the £750 average loss will only be offset by £200 as a result of the new living wage, meaning that even those who get the increase will still be £550 worse off.

Paul Chandler, Chair of the local Lib Dems, said: “The changes to tax credits will hammer families in our city and completely undermine any claim the Tories have of being on the side of working families.

“What makes this even worse is that over 16,000 children in our area 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 has shown that the Conservatives’ 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 are opposing this measure. We worked hard in Coalition to ensure that work would always pay more than choosing to remain on benefits. It is a disgrace that the Conservatives are now undermining this good work.”