Tory tax credit cuts will hammer 3,800 families in Cheltenham

THREE thousand eight hundred families in Cheltenham will lose out under Conservative plans to cut tax credits.

THREE thousand eight hundred families in Cheltenham will lose out under Conservative plans to cut tax credits.

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 £4.05million to families in Cheltenham 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 and the Resolution Foundation (who campaign for low income families) have both 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.

Lib Dem parliamentary spokesperson for Cheltenham Martin Horwood said: “The changes to tax credits will hammer families in Cheltenham.  The move completely undermines any claim the Tories have of being on the side of working families and it's in real contrast to the care we took in coalition government to look after those in low pay.

“What makes this even worse is that 5,900 children in Cheltenham will now live in poorer households, reducing their life chances and making it harder for their parents to make ends meet.

“I am pleased that Tim Farron and the Lib Dems are opposing this measure and disappointed that our new Conservative MP didn't rebel and support the opposition motion, or even speak out against the changes as at least one of his colleagues has done.  He preserved his 100% loyalty to the party whip instead of sticking up for some of his poorest constituents.  He clearly isn't a liberal, independent-minded Tory in the Charles Irving mould. 

"Liberal Democrats worked hard in coalition to ensure that work would always pay more than choosing to remain on benefits, and to help low-paid families through income tax cuts. It is a disgrace the Conservatives are now undermining all this good work.”

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