Tax credit changes will hurt families in Hull and Hessle- Councillor Claire Thomas


19,300 families in Hull and Hessle will lose out under Conservative plans to cut tax credits.

Figures produced by the House of Commons Library show 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.

The change will mean a total loss of £21,900,000 to families in Hull and Hessle, with the average family losing £750 a year.

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.

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

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.

Councillor Claire Thomas said:

“The changes to tax credits will really hurt families in Hull and Hessle.  The move completely undermines any claim the Tories have of being on the side of working families.

“The fact that 27,100 children in our area will now be forced to live in poorer households is very worrying indeed- reducing their life chances and making it harder for their parents to make ends meet.

“Studies have shown that the Conservative’s claim to be supporting low income families through a minimum wage increase nowhere near makes up for these cuts. It’s time for them to think again and support people who are 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 the Conservatives are now undermining this good work.”


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