Commenting on the announcement in today’s (Wednesday’s) spending review that the Chancellor is to reverse his planned cuts to tax credits, UNISON General Secretary Dave Prentis said:
“Nearly three million working families countrywide have breathed a collective sigh of relief. Since the cuts were announced in the summer, parents have faced increasing anxiety over losing the tax credits they rely upon so heavily.
“We’re pleased that the Chancellor has made good use of the thinking time last month’s Lords vote gave the government.
“But the real credit for today’s decision goes to the many brave parents who talked publicly about their already stretched finances, and the distress and hardship the cuts would cause. Their stories convinced the government this unfair tax credits grab was wrong.
“The government must now do more to encourage employers to pay staff more – at least the real living wage of £8.25 an hour. This would make a difference to the many low-income families still struggling to make ends meet.
“In 2018 new claims for tax credits will stop, and the families receiving them will start to be switched on to Universal Credit. The Chancellor must not use this change as a way to revive his original plans and leave working families worse off in 2020 than today.”