News from The Labour Party

Osborne’s plans would hit millions of families on modest incomes

Parliamentary Answers laid in the House yesterday reveal cost of Tory tax credit plans.

Parliamentary Answers laid in the House of Commons today have revealed George Osborne’s tax credit plans would hit millions of families on modest incomes.

The Conservatives have claimed they would save £400 million a year by scrapping means-tested tax credits for families with incomes over £50,000.

These new figures show that to recoup £400 million a couple earning as little as £16,000 each would lose out under Osborne’s tax plans.

Liam Byrne MP, Labour’s Chief Secretary to the Treasury, said:

“For the Tories to recoup £400 million from tax credits as they’ve pledged, Osborne had claimed he would only remove tax credits from those earning over £50,000. But figures released to Parliament yesterday show that to raise the £400,000 Osborne’s credibility depends on, a couple earning as little as £16,000 each would be hit by his tax plans.

“These new Treasury figures expose how George Osborne has misled millions of people over the scale of cuts he would make to their tax credits.

“Now we learn that he would hit millions of families on low incomes, while still promising to give £200,000 to the richest estates.

“Two days ago it was prisons, yesterday it’s tax credits. Every day, another of George Osborne’s unfair policies unravels.

“It’s not clear whether it’s down to his bad judgement, his inexperience or something more sinister.”