The tax credits cut won’t push wages up, no matter what the Tories say

Betrayed ex-Tory voter Michelle Dorrell. Millions like her will lose thousands of pounds per year, because the Tories they supported couldn’t care less about them.

This may need to be explained many times:

The Tory tax credit cut means people who currently receive the HMRC-funded boost to their income will lose money – thousands of pounds per year in many cases.

Employers are being offered no incentive to increase wages whatsoever. Claims that the cut is part of a package designed to boost wages are utterly false.

The Tories are planning to raise the minimum wage, calling it the National Living Wage – but the rebranding is another lie, because nobody will be able to live on the new amount to be offered alone.

If you currently receive tax credits, and voted Conservative in the belief that they would honour their promise not to cut your income, you were tricked.

Now pass on the message to everyone you know who was also tricked by these liars.

The government has been forced to defend its plans to cut tax credits after a former Tory voter broke down in tears on the BBC’s Question Time and accused the party of betraying her and thousands of others.

Michelle Dorrell, a mother-of-four who berated a government minister on the panel of the current affairs programme, later revealed that she was now willing to offer qualified support for the new Labour leader Jeremy Corbyn.

Dorrell, 35, who runs a nail bar from her home in Folkestone, said on Friday morning after her appearance in the Question Time audience that the Conservative party had lost her vote.

[She] said she and her four children were entirely dependent on a combination of working tax credits and child benefits because her business did not make a profit. “I get £400 a week in tax credits and child maintenance from my ex-partner and child benefit. And that’s what I live on. What I make from the business goes straight back into it.”

Dorrell, who accused the Tories of telling lies to her and others in a similar situation, said that her intervention on Question Time was a spur of the moment response to what was being said.

Defending the government’s decision to cut tax credits by £4.5bn, David Cameron’s spokesman said: “The point the prime minister and government is trying to get across is that it’s important you see the changes we are making in tax credits are part of an overall package of changes, designed to ensure we push wages up.”

He added: “It’s worth remembering with tax credits … they have increased over the years and so the spend on tax credits has gone up and up and up. If we’re going to tackle the overall welfare budget and try to move away from being a high welfare country to a low welfare country, then this is something we have to look at.”

Asked whether Cameron would be making an appointment to meet Dorrell and explain his reasoning, the spokesman said: “The prime minister meets with people from all different walks of life all the time.”

Source: Cameron responds to Question Time tax credits complaint | Money | The Guardian

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12 thoughts on “The tax credits cut won’t push wages up, no matter what the Tories say

  1. AndyH

    IIRC the tax credits were brought in because wages were so low. The ‘work penalty’ (as it is being referred to and must keep being referred to) is not going to address this problem at all.

    At the same time cutting corporation tax is appalling – considering how little tax amazon, starf**ks and facebook pay. As the great George Carlin said: “Conservatives say if you don’t give the rich more money, they will lose their incentive to invest. As for the poor, they tell us they’ve lost all incentive because we’ve given them too much money.”

  2. AndyH

    Ex conservative voters – like this woman – need to be treated with compassion -it’s the only way we can encourage others to speak out – and invite them to vote for alternatives. This woman, voted Conservative as she believed Cameron’s cast-iron pledge that her income was safe. Doubtless also she sucumbed to the propoganda owned by the media moguls. She voted with the best of intentions – we must not judge her just because the scales have fallen from her eyes.

  3. Nick

    There is no way a tax credit cut can push wages up. All a decent employer can do is to make up the shortfall should he wish to do so

    The chances are slim for the average business as to do so he or she will have to increase their costs making their business vulnerable to bankruptcy because the public may not wish to pay the increased costs for their goods or services

    The only way a top business can make up the shortfall for the tax credit cut is out of the owners own wealth so instead of paying themselves and directors millions of pounds each year they share it out more with all of their low paid staff

    You cant push wages up either as the government has no control over what a business may pay as long as it is the minimum wage or above

    paying £7-20 an hour in reality only pays £1’092 monthly £13’104 yearly for a 35 hour week

    note that although most people are at work for 40 hours a week they do not get paid for their lunch hour in many cases

    rent for most people is around £600 per month in social low cost housing plus £175 per month council tax

    all of this is basic maths and knowledge of which all mp’s should be able to grasp if i know all of the facts and figures of the benefit system then i would expect mp’s on £75000 a year to be able to do likewise

    if not then get out and get a proper job because if you cant grasp the basics i have outlined above then your not fit for purpose and anything you do say will invariably be crap and be worthless

    1. Mike Sivier Post author

      Yes, I think that’s correct – but I don’t think it will happen. At least, not to Tory donors.

  4. ian725

    This Tory government are the most accomplished liars I have come across in my lifetime. They are shameless and are as children out of control in Parliament. I cannot suffer their gloating. Its time Parliament was dragged into the 21st Century . Gentleman Jeremy is a revelation in the House he shows how it should their behaviour should be conducted. I now firmly believe that the Tories are afraid of him …. and perhaps a little bit envious.

  5. Florence

    The sad thing is, that Ms Dorrells income is under further threat from the “Welfare Reforms”, as self employed, and with more than 2 children. It is also probable that the Inland revenue will decide that her business isn’t viable, and demand all Tax Credits repaid and force her onto JSA, losing any remaining in-work benefits.

  6. rockingbass

    As Carmichael ex sectary of state in Scotland argued in court “It is only apolitical Lie so it dose not count”…..discus

  7. marcusdemowbray

    Osborne said at Conference that he wants to make UK a super-power like China and USA. Both countries have thousands of square miles of factories and workshops of all sizes, making everything from sink plugs to ships. Loads of self-employed people and small businesses, like Michelle Dorrell’s, only survive thanks to Tax Credits. In all my life politicians have always banged on and on about how they “support” the small businesses and the self-employed, but year-on-year it has become ever harder for them to compete in UK, especially with the ceaseless take-over of almost everything in UK by foreign multi-nationals. Two of these foreign corporations have recently driven a bunch of nails into the coffin of UK steel production. Self-employed and small businesses are now virtually the only sector of UK’s commerce which is UK based and owned, and which contributes SIGNIFICANTLY to our economy.

    Tax Credits are the only thing in my entire life of 60 years which politicians have done which REALLY help the self-employed and small businesses. Many of these cannot afford to pay themselves “living wages” every week.

    So while the multi-nationals are taking over UK, paying little or no tax, using profits from UK operations to improve their services in their home countries, and closing down smaller UK businesses and the sad remains of British Industry, cuts to Tax Credits will destroy small businesses and self-employed people.

    Excuse me, but how is this going all going to make UK a super-economy?!

  8. Bookworm

    Funny how she voted Tory when she was entirely dependent on benefits/maintainance herself and voted for cuts for others quite happily. I suspect there’s many more like her who will have to be welcomed to Labour rather than scorning them so they transfer their affections to Ukip.

  9. Dez

    Employers who have to pay the National Minimum Wage will just cut down the number of hours worked rather than pay the full week at the higher rate. Same wage bill but they will have to work harder in the reduced hours……reality check Cons..

  10. mrmarcpc

    Miss Dorrell and others like her will know realise the harsh truth of it all is that no matter who you are and what you do or don’t do, you’re going to get shafted good and proper by the tories because they don’t really care about working people at all, if you were working or not, it didn’t matter, you were still going to get well and truly screwed!

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