Tax credit change will hit more than 7,000 working households across the borough, says Unison

Government cuts to tax credits next April will leave more than 7,000 low to middle income working families across the borough – and almost 15,000 children – significantly worse off, according to new research published today (Saturday 3 October) by Unison.

Using official figurespublished by HM Revenue & Customs (HMRC), Unison has calculated that across the UK more than 2.7m working families – or two in five of all working families with dependent children – could lose as much as £3,000 a year next April. This is equivalent to the entire population of Greater Manchester, where the Conservative party conference gets underway tomorrow (Sunday 4 October).

And in working households across the UK where the parents are in receipt of tax credits, there are 5.2m children, equivalent to the entire population of Scotland. In the North West there are almost 637,000 children whose parents will be penalised by the changes to tax credits.

In his July Budget, the Chancellor announced changes to the tax credit taper and threshold, a move that will see £4.4bn a year taken out of the pockets of low to middle income families across the UK. In some cases people stand to lose more than ten per cent of their take home pay.

The most deprived parts of the country have the largest number of families affected by the proposals, while in more affluent places there are far fewer families who stand to lose out.

Commenting on the research Unison General Secretary Dave Prentis said: “Many of the thousands of families in the North West who will be the victims of the Chancellor’s cruel tax credits snatch and grab still have no idea that they are going to lose out next year. When they start receiving letters in the post from HMRC just before Christmas, it will mean chaos for family finances.

“Tax credits are a lifeline for families in the North West – quite simply they are the difference between them keeping their heads above water and going under.

“The huge loss of income – of between £1,000-£3,000 a year – will have a devastating impact upon family budgets that have yet to recover from the living standards crisis. Parents, who will go without in a vain attempt to make sure their children don’t, will be forced deeper into debt.

“The government is full of praise for people who go out to work to try and provide better lives for their children. Yet these are the very people these punitive changes will hurt. It’s time for the Chancellor to admit that he’s got this one very wrong, and back down before it’s too late.”