Over 3,000 families with children in Derby will lose an average of £511 a year from changes to tax, benefits and tax credits being introduced from today, according to new figures from the Institute for Fiscal Studies.
The analysis follows last month's Budget and is 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.
New government figures obtained by Labour also show that more than 3,000 families in Derby are set to lose all of their Child Tax Credit or Working Tax Credit from today.
Over 2,500 Derby families on modest and middle incomes will lose all of their Child Tax Credit – worth around £545 per year.
And over 1,000 working couples in Derby 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.
Figures also uncovered by Labour reveal that, following today’s changes to working tax credit, 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.
The IFS figures also show that government policies mean pensioners will be an average of £315 a year worse off from April 2014 once cuts to their allowances announced in last month’s Budget – what has been dubbed the 'granny tax' – have kicked in.
Families on middle and low incomes here in Derby are facing a tax credits bombshell from David Cameron and George Osborne.
For all the government’s talk about increasing the personal allowance, these independent figures show that while they may be giving with one hand they are taking much more away with the other. That is why families with children will be an average of £511 a year worse from today.
Why is it that 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 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. His empty slogan has been exposed by the reality of his policies which are hitting women harder than men and hitting families with children hardest of all.
We need a plan for growth rather than this failing austerity programme that is doing such damage to our economy, our precious public services and impoverishing millions of people.
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