Prime Minister signals cuts to tax credits

23 Jun 2015

During a recent speech, Prime Minister David Cameron has indicated the specific welfare cuts the Government intends to announce in the coming Second Budget.

The Conservatives declared the need for £12 billion in welfare cuts when they won the general election, pledging instead an increase to the minimum wage and tax free personal allowance in order to support working families.

Mr Cameron said: ‘There is what I would call a merry-go-round. People working on the minimum wage having that money taxed by the Government and then the Government giving them that money back – and more – in welfare.

‘Again, it’s dealing with the symptoms of the problem – topping up low pay rather than extending the drivers of opportunity – helping to create well-paid jobs in the first place.’

However the move has already met with criticism. General Secretary of the Trades Union Congress (TUC) Frances O’Grady said: ‘Tax credits play a vital role in making sure the UK’s working families are better off in work’.

Shadow Chancellor Chris Leslie said: ‘The Prime Minister still hasn’t come clean and said exactly what cuts he is proposing.

‘The Government have a clear choice – will they tackle low pay or will they hit the low paid?’

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