Tax credits – September 2015

Labour voted against the Tax Credits (Income Thresholds and Determination of Rates) (Amendment) Regulations 2015.

These changes introduced a work penalty into the tax credit system and weakened incentives for people to find work or take on more hours – and were not in the Conservative manifesto.

According to the independent Institute for Fiscal Studies (IFS) these changes will see over 3 million families lose an average of £1,000 a year. The IFS have also confirmed that it is ‘arithmetically impossible’ for the government’s so called ‘National Living Wage’ to make up for these losses.

The Labour Party wants to see a higher wage economy where people are less reliant on tax credits to make ends meet, and action on low pay and high rents which are the real drivers of rising social security spending.

It is deeply regrettable, however, that the government scheduled its motion on the Jewish High Holy Days of Rosh Hashanah, which meant that I was not able to attend. However I will continue to make my total opposition to these changes known through all other channels available to me.