Tax squeeze for families set to come into effect

By ITN on 5th April, 2012

© Reuters/Toby Melville

The Institute for Fiscal Studies said cuts of over £2 billion will come into effect over Easter, prompting anti-poverty campaigners to brand the start of the financial year “Bad Friday”.

Shadow Chancellor Ed Balls dubbed the revelations a “tax credits bombshell” on Thursday, adding: “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 tomorrow.”

Child Poverty Action Group chief executive Alison Garnham added: “Some of the poorest working families will lose thousands of pounds from their annual income, leaving them in a desperate struggle to pay for basics like groceries, clothes and household bills.”

Labour said Government numbers suggested over 850,000 families will lose their child tax credit, worth around £545 per year, from the start of the financial year.

Another 212,000 couples earning under £17,000 a year would lose working tax credit unless they were able to work for longer, Labour said.

Source: http://www.itn.co.uk/uk/42664/120405TAX