Mid Ulster MLA calls for a ‘living wage’ before Tax Credit cuts

If the rumoured cut to tax credits goes ahead, Barnado’s have estimated that around 49,500 children in the borough stand to be affected.

The cuts are expected as the Tory government looks to cut £12b from the welfare bill.

Barnardo’s has calculated that 55 percent of children (267,000) in Northern Ireland are in families who now use tax credits to top up low incomes – helping them buy essentials such as food and clothing for the family.

“Families would be better off if the government focused on tackling low wages and high childcare costs, instead of cutting struggling families’ income”.

And whilst for some small businesses this may genuinely be the only way to maintain a particular job as they struggle in a post-recession economy, many large organisations have ample means to restore the balance (for instance, Next, who’s employees received over £67K worth of tax credits whilst the store made over £695 million in annual profits).

The figures cause concern ahead of George Osborne’s Emergency Budget later this week, as it is expected to include measures to reduce tax credits – a key measure for supporting working families.

Mr Osborne said: ” It has become a very, very expensive system. Dealing with tax credits amongst the other in work benefits will also play its part in making the United Kingdom a less enticing destination from european benefits migrants.

“Recent research by the Joseph Rowntree Foundation shows that even with the support provided through the welfare system, an average low-earning working family has an income £74 per week short of what is generally regarded as required for a decent standard of living”.

“If, as we expect, the United Kingdom Government targets tax credits for cuts in tomorrow’s Budget, it will hit Scotland’s poorest children and families hard”.

He said: “Cuts such as lowering the benefit cap are ideologically driven”.

But the Government does have a duty to do this responsibly, without plunging “hard working families” (as Cameron so often endearingly calls them) into debt and poverty.

“I would urge the United Kingdom Chancellor to reconsider these cuts and ensure that the poorest families throughout the United Kingdom are able to access the support they need to lead decent, dignified lives”.

She argued the continuing austerity from the Tories is “economically counter-productive”, adding: “We want to support people to get into work and to stay in work and the tax credit system provides important practical help to families on low pay”.

“The Poverty Alliance has campaigned, and will continue to campaign for, a fairer social security system which lifts people out of poverty and helps them achieve their full potential”.