MPs Approve Plans To Cut Tax Credits By £4.4 Billion

george osborne is an arse pm

MPs in the commons have just voted on George Osborne's plans to cut tax credits, and have approved the measures which will aim to save £4.4 billion from the welfare budget. Despite opposition from Labour and the SNP the cuts will go ahead, and this is going to hit families hard.

The plans were announced in the Queen's Speech in June, and they will lower the earnings level above which tax credits are withdrawn from £6,420 to £3,850, and the rate at which the benefit is lost will also speed up. Tax credits will also now be limited to two children per family.

Tory ministers say the idea is to "raise pay and incentivise work", and Labour say it is an "ideological attack" on working families. The changes will come into force with the new tax year from April 2016, and Labour claim that three million families face losing an average of £1,000 a year. It is estimated that 870,ooo families currently in receipt of tax credits have more than 2 children, so those will see their income cut dramatically.

The treasury minister has said that eight out ten households would be better off by 2018-9 as a result of the new national living wage, an increase in the personal tax allowance and extend childcare subsidies.

So what do you think of these tax credit cuts? They are going to mean a reduction in income for both working and non-working families, so as the government struggle to balance their books it looks like millions of families are going to have to rethink their own budgets too.


  • linds1185
    I have 4 kids and both my partner and i work. My tax credits are going to be cut just because I choose to have more children even though we both work and try our best. Neither of us gets the living wage because ITS NOT COMPULSORY. Raising the living wage does nothing. Try raising the MINIMUM wage. That would make a difference. What a complete con from the CONservatives!!!!!
    Iam a full time working mum of 1 and also care for my grandaughter tax credits are Wat just keeps and no more everytime new renewal comes up i get less and less leaving us with less to spend on food heating and clothes for the kids I find it a disgrace that in this time of society working families are punished but we seemly have plenty money to send abroad and take in refugees house them feed them and give them benifits but we can't even look after our own veterans and oaps but the government can cut back on nhs, tax credits , ect is it not about time we start taking a close look at our own before taking on other countries .
  • shaz2kay26
    it is getting ridiculous only because they can't balance there books doesn't mean they can take it out on the children
  • Rachyx
    Totally agree with elmalangham!!! Help our own before others!!
  • nadacolada
    Thanks for the feedback, folks! This is most definitely a hard subject and can be quite worrying for some. Nice to hear your opinions on this! Nada :D
  • ramiuk1
    while i hate the cons,it has been seen that people pop loads of kids out and dont work just so they can recieve benefits. (i dont mean working families,i mean the pajama gangs) some people near me are on more money than me and they dont work yet i work 6 days a week,they smoke,drink and go on 3-4 holidays a year and i struggle to get one. the issue i have and i have had pretty much everything taken away from me and we struggle alot but my 2nd child has just turned 3 and has started nursery with 15 hours a week spread over 5 days,they expect my GF to get a job but we have nobody to collect my older child from school at 3:30pm and my daughter is at nursery from 9am ish to about 11:30am. i cant finish work to get back for my boy so gf has to,so where is she meant to work?on nights and not sleep? why not take all benefits of anyone earning over £30k a year? i dont get why i get child benefit of £100 a month and so does a guy who is earning double my wage,driving round in a 60k car given to him from work to keep his wage lower. all the people who didnt vote for change in UK are to blame imo because we all knew what tories was gonna do.
  • Rachyx
    So people who work hard to get into a well paid job should be punished? You awkward situation is just like others out there who find a way and manage. If your jealous of the guy with the 60k car perhaps you should've worked alot harder to get a well paid job like we teach our children. Then your gf wouldn't need to be pushed back into work and could be a stay at home parent until the child goes to full time education in a year. How about penalise people who are scamming the system? Or sort our own first then whatever is left over then help others who come here
  • olivia280177
    'It is estimated that 870,ooo families currently in receipt of tax credits have more than 2 children, so those will see their income cut dramatically.' I don't think this is true, I think it's for only 3rd and subsequent children born from April 2017? I don't think it is being applied retrospectively? I read this in the article you link to Tax Credits Any family which has a third or subsequent child born after April 2017 will not qualify for Child Tax Credit, which amounts to up to £2,780 a year per child. This will also apply to families claiming Universal Credit for the first time after April 2017. What do you think? I have 3 children so it does concern me, but I had thought it doesn't affect those already born.

What do you think?

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