Tax Credit Cuts To Hit 800,000 Workers

About 800,000 people will still be hit by tax credit cuts from April because of a little-noticed change that survived the government’s controversial U-turn on the policy last year. Labour said the scale of those affected by the cut would come as a surprise to those who thought the chancellor had abandoned attempts to reduce tax credits under pressure from the opposition and some Tory MPs.

Osborne was forced into the humiliating climbdown over tax credits in his autumn statement in November following a defeat for the proposed measures in the House of Lords. The defeat prompted a clash between the government and the upper chamber over whether the Lords could block a measure with such large implications for the government’s finances. Read more on the Welfare Weekly website.