The Tories' plans to cut tax credits for low and middle income families have been halted by the House of Lords but the fight is not yet over.
In October 2015 Labour peers forced the government to think again on plans to strip 3 million working families of around £1,300 a year. The vote in the Lords delays the changes for at least three years unless the government put proper protections in place for families currently receiving tax credits.
6,600 families in Redcar constituency would be affected by the changes, many of whom have written to me to share their anguish about how it will impact them.
Tax credits were introduced by the last Labour government to ensure that work pays. Before the election David Cameron said he would not cut them but he has since broken his promise by trying to force the cuts through.
The government claim it will be counterbalanced by a rise in the minimum wage over the next 5 years and further rises in the personal tax allowance but the respected Institute for Fiscal Studies has confirmed a majority of people will be worse off.
The changes penalise those who work hard day after day to support their families. For some workers it would mean they get to keep just 7p in every extra £1 that they earn – so much for being the ‘party of working people’!
Join Labour’s campaign to call on David Cameron to stop the tax credit cut by signing this petition: