This Government has failed to tackle the real drivers of a welfare bill, low pay and the high cost of renting. This failure caused the Department for Work and pensions to overspend by £25bn over the last parliament.

Now they are slashing in-work benefits like tax credits by £4.4bn.

The Tories cut tax credits 14 times in the last parliament – meaning over half of all families with children, most of which are in work, are worse off after five years of David Cameron. 

In the Denton and Reddish constituency alone, there are about 8,000 children in 6,500 families receiving tax credits. Now they will be facing punishing reductions in the cash they have to live on. 580,100 of Britain’s poorest working families earning less than £6,420 a year face the prospect of being ‘taxed’ for the first time. Those earning between £3,850 (the level of the proposed allowance) and £6,430 (the current level) will lose 48p in tax credits for each pound they earn. Families earning £6,410 a year will be £1200 worse off as a result.

According to the IFS these changes will see over 3 million families lose an average of £1,000 a year. The IFS have also confirmed that it is “arithmetically impossible” for the Government’s so called ‘National Living Wage’ to make up for these losses. This means that, on balance, the poorest will actually LOSE money on balance. The Tory living wage bluster is nothing more than a smoke screen.

I want to see a higher wage economy where people are less reliant on tax credits to make ends meet, and action on low pay and high rents which are the real drivers of rising social security spending. The majority of the households having money taken away are families with children.

For a Government that claimed to want to make work pay, they have a pretty shoddy – and ineffective – way of going about it. I voted AGAINST this nasty bit of legislation in the House of Commons.

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Constituency Office
Denton Town Hall Market Street Denton, Manchester M34 2AP
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Office of Andrew Gwynne MP House of Commons London, SW1A 0AA