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Tax credit changes will hammer families across Stockport borough

by Lib Dem team on 21 October, 2015

13,500 families across Stockport borough will lose out under Conservative plans to cut tax credits, and Lib Dem leader Tim Farron is working with his team in the Lords to table a “fatal motion” which could stop the proposals.

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 over £14m to families across Stockport, 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.

Stockport Council Leader Sue Derbyshire said “The changes to tax credits will hammer families across Stockport. The move completely undermines any claim the Tories have of being on the side of working families.

“What makes this even worse is that over 20,400 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 have shown that the Conservative’s 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 the Conservatives are now undermining this good work.”


4 Responses

  1. Karen Hill says:

    This really effects us we will lose over £1200 per year. We work so hard My husband a self employed builder of 25 years doing over 40 hours a week and myself a customer assistant 37 hours per week. We have 3 children under 18 still at home and cant even make ends meet now. we average about £1700 per month between us and our household bills and mortgage total £1400+ that does not include any food, clothes, birthdays, Christmas, holidays, car/ house ins, school trips etc. or anything else that comes along . This extra £100 a month is vital and there is no way I will see the £9 p/h rate for years. We will be lucky if we still have our house this time next year.

  2. bruce says:

    The main problem with introducing any benefit is that it is nigh on impossible to change /remove it. Although it does cost a huge amount the way the government are introducing the changes should be modified . They need to think again.

  3. Halifax says:

    Something has to be cut, but no cut will be popular, whether it’s welfare, NHS, policing etc. And tax credits cost £30bn

    Whilst some may argue for tax rises, the fact suggest that this may not be possible. Currently the UK tax take is a third of GDP and UK history shows that you can’t raise it by more than 1-2% above this without actually driving the tax take down

  4. Rick says:

    Congratulations to the House of Lords for telling this lying CONservative government what to do with their tax credit cuts.

    It was about time for this second chamber to prove their worth(?) to the people of this country.

    Kudos to the Labour and Lib Dem Peers who defeated this totally unfair law.

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