Cutting child tax credits isn’t an incentive to work – it’s victimising poor families


The smart bet was always that the axe would fall on Child Tax Credits – now here’s proof that George Osborne and David Cameron are considering it.

Tories reckon that they can fool us into believing the cut will be an incentive to get parents into work. It’s just a shame the jobs they envisage are only imaginary.

Besides, Child Tax Credits are paid to people who are already in work.

Some sources are saying this would push companies to stop underpaying and raise their wages to a level at which people could live without claiming in-work benefits – but this is just speculation.

The far more likely result is that families will be £845 per child, per year, worse off.

The government is considering reducing tax credits for millions of working families as part of its £12bn welfare cuts, the BBC understands.

Allies of George Osborne are studying an Institute for Fiscal Studies idea to return tax credits to 2003/4 levels, plus inflation – saving £5bn.

Changes would cut entitlements for about 3.7 million low-income families by about £1,400 a year, the IFS said.

Political allies of Mr Osborne say the move would increase incentives to work.

To the nearly 25 per cent of voters who supported the Conservatives: You voted for them. What are you going to say to your neighbours who will suffer?

Source: George Osborne considering £5bn cuts to child tax credits – BBC News

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16 thoughts on “Cutting child tax credits isn’t an incentive to work – it’s victimising poor families

  1. Steve Grant

    What are the 25% of TORY voters going to say to the neighbours?…..Thats pretty simple “Im alright Jack”…..that’s what!…..There is a virus that’s been going around for awhile now which spread from America……it was finally identified as the ” dog eat dog” virus….That’s pretty well entrenched in this country now…..there is no cure.

  2. Dave Rowlands

    Another £5bn taken out of the economy, people with less money to spend in local shops and other goodies, great way to re-vitalise the system eh George?

  3. Helen Burns

    A lot of small business owners claim it too. Even more money taken out of circulation to spend in the local economy strangling it.


    As IF employers are going to increase wages just because the Tories are considering cutting CTC’S, what planet do these idiots live on? Employers will do ANYTHING to keep wages as low as is humanly possible. Zero hours should be banned, as should the “employment” agencies that systematically enslave people to them and their hideous business practices. Hmm I wonder why the Tories haven’t banned ZHC’S? The Tories will NEVER ban ZHC’S as such contracts keep the populace subservient and it also ensures a steady stream of cheap labour for their rich industrialist chums.

  5. jeffrey davies

    robbing the poor to bail out the rich how quaint but then culling the stock by any means will not deter these who have no morals or humanity in them jeff3

  6. Glenn Hanson (@gdhanson)

    Looks like they’re putting the cart before the horse again. It’s right we should be trying to eliminate tax credits – which ultimately is just a subsidy for poor paying bosses – but it should be done through raising the minimum wage which will automatically reduce tax credits without penalising low income families.

  7. Jim Round

    Does the government have shares in Aldi and Lidl?
    Very few people who voted Conservative will live near anyone affected, and those that do will probably resent the “stacks of money” families with kids get.
    It is very different from many years ago when you could get by with one earner.
    It is telling that the actual cost of living is not being debated.

  8. Ruth

    Im a single parent who has always worked. The conservatives looked after couples with parental leave and pensioners with pension credit, labour sorted out unemployed and disabled with benefits. The only little bit of help you get working to support your kids and they want to reduce it. It’s bad enough struggling, working trying to make ends meet as a single person without making it harder. Which party is going to stick up for those trying and working?

    1. Mike Sivier Post author

      Please don’t buy into the current government’s divisive tactics.
      Even if Labour did provide benefits for the unemployed and disabled, the Tories are cutting those benefits to the point at which people will not be able to afford to live on them.
      Labour also created tax credits.
      Parental leave was a Liberal Democrat policy, if I recall correctly (I may not).
      And the Tories are attacking pensioners. They simply aren’t admitting it.

      None of the above goes against your main point, which is about the loss of tax credits for working people. You are right – the Conservative Government is penalising workers. The minimum wage should have been raised in tandem with this move – but of course Tories won’t force corporations to do the right thing, ever. They’d rather emulate those firms (look at how they have reduced payments to public sector workers).

  9. hugosmum70

    i still do not understand how this lot got in with only 25% votes. i have read that Labour got over 50% of the votes. it doesn’t make sense.

  10. Thomas

    The unions are too weak so all it will do is make life more unpleasant for the low paid.

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