More than 2,210 Derby families are set to lose an average of £438 a year in support for childcare costs, according to an independent think tank the Resolution Foundation.
Some families could lose considerably more in comparison to previous Government plans.
The cuts stem from an announcement made by Chancellor George Osborne in the October Spending Review, but this is the first time that their full impact has been shown.
The changes relate to the childcare element of the Working Tax Credit, which is claimed by around 450,000 working households across the UK.
Under the current system, working parents can claim support for up to 80% of the costs of childcare, but from April that figure will fall to 70%.
A recent survey found that as many as one in three working parents is considering giving up their job because they feel unable to cope with childcare costs.
Even before these cuts are factored in, thousands of workers in Derby are seeing their earnings frozen or going down and will have to tighten their belts even further.
With other work-related costs, such as train fares, now also rising, these cuts couldn’t come at a worse time for families. Many families are still unaware of the changes, despite the fact that they come into effect in a few months time.
For working mums on low-to-middle incomes losses like these will be hard to bear. Many parents find support with childcare costs absolutely essential to staying in work, and the big worry is some will now find that work doesn’t pay.
This was already set to be a tough year for families because of the Government’s austerity measures, and these cuts will make matters even worse.
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