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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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