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Derek Twigg, MP for Halton

Working Hard for Widnes, Runcorn & Hale

Derek attacks £4,000 annual 'tax credits' bombshell for 260 local couples

20 Feb 2012

Derek has voiced his opposition to a change in tax credit rules being introduced by the Government from this April, which could see 260 couples in part-time work with children in Halton losing around £4,000 a year.

He is urging ministers to reconsider a little-noticed change to tax credit rules which means 212,000 families across the country will lose all of their working tax credits unless they can significantly increase their working hours, according to the Government's own figures as revealed in parliamentary answers to Labour's Shadow Treasury Minister Cathy Jamieson MP.

The change means that couples with children and earning less than around £17,000 will need to increase the number of hours they work from a minimum of 16 to 24 hours per week or they will lose all their working credit of £3,870 per year.

Derek said:

"This is a deeply unfair change from a Conservative-led Government that is increasingly out of touch with parents feeling the squeeze and struggling to juggle work and family life.

Raising taxes and cutting spending too far and too fast has seen unemployment rise and the economy go into reverse, and many employers are cutting people's hours.  For a couple losing around £4k a year, this could mean going out to work makes no sense.

It tells you everything you need to know about David Cameron and George Osborne that while the banks are getting a tax cut this year, they are making life harder for parents in the squeezed middle who are working and trying to do the right thing.

This tax credits bombshell is now just a few weeks away.  For many families here in Halton it means going out to work won't pay and they'll be better off on benefts.  That makes no economic sense at all.  The Government urgently needs to think again."

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