Local MP Alex Cunningham has expressed his anger at the Tory- led government’s policy which will see up to 1,640 families in Stockton North lose all of their Child Tax Credit or Working Tax Credit.
Recent changes to tax credits mean that 1,300 families in Stockton North on modest and middle incomes will lose all of their Child Tax Credit – worth around £545 per year, and up to 340 working couples earning less than around £17,000 per year will lose all of their Working Tax Credit – worth up to £3,870 per year – if they cannot increase their working hours.
Families with children will lose an average of £511 a year from changes to tax, benefits and tax credits.
These reductions in hard working families’ incomes are on top of tax rises already introduced, like last year’s VAT rise which is costing a family with children an average of £450 per year. Changes to working tax credit would also mean a couple with two children on the minimum wage will be better off quitting their jobs if they cannot work at least 19 hours per week.
“Families on middle and low incomes in Stockton North are facing a tax credits bombshell from David Cameron and George Osborne. For all the government’s talk about increasing the personal allowance, these figures show that they are giving with one hand and taking much more away with the other hand, leaving families with children an average of £511 a year worse off.
“There do need to be tough decisions on tax, spending and pay. But why are people earning over £150,000 soon to get a £3 billion tax cut from this out of touch government while parents on middle and modest incomes in Stockton North are being clobbered?
“It cannot be the right priority to make thousands of families and pensioners pay more so millionaires can pay less – over £40,000 less in the case of the 14,000 richest people in the country. And it cannot be right to leave working parents trying to do the right thing better off if they quit their jobs.
“It is no wonder that the Chancellor cannot bring himself to say the words ‘we’re all in this together’ again.