A shocking new report by the public sector union, UNISON, has found that the measures included in the Chancellor's July budget will hit working people and families harder than previously thought.
The Chancellor announced a rise in the Minimum Wage in his budget from £12,184 a year in October to £13,104 next April. But new research reveals that the big changes to tax credits hidden away in the Budget show that the reduction in the threshold that applies to tax credits from £6,420 to £3,850 and the increase in the taper to 48p from 41p overnight will dramatically reduce income.
As many as 3 million working families will lose over £1,000 a year on average and the £825 gained since 2010 as a result of the increase in personal tax allowances will be wiped out overnight.
Responding Louise said:
"This important new research from UNISON rubbishes claims made by the Tories that the cuts in tax credits will be 'more than made up' by rise in the minimum wage. This reveals that the cuts will be eye wateringly painful to families on low-pay. What kind of Chancellor trumpets a pay-rise for the low paid while cutting the income of a couple under-25 on the minimum wage by £1,459 per year?"
"Alongside UNISON and my colleagues in Labour, I will fight the cut to the tax credit taper which is Osborne's way of sneaking in substantial savings on the backs of the poor".
You can find out more about UNISON's research and the campaign here.