Wednesday, March 07, 2012

Ed Miliband challenges the Prime Minister on working tax credits

Labour leader Ed Miliband used today’s Prime Minister’s Questions to challenge David Cameron to say what advice he would give to the thousands of couples on low incomes who will lose nearly £4,000 when cuts to working tax credits are introduced in April.

Couples currently receive Working Tax Credit if they work at least 16 hours a week, but from next month this will change to 24 hours. A survey of Usdaw members affected by the change found that 78% say they are unable to find the additional hours they need to avoid losing their Working Tax Credit. A survey of employers just released by Working Families has found that only 17% are confident of being able to meet the requests for the extra hours their staff need.

Citing the example of Usdaw member Tim Howes, whose family will lose over £60 a week, Ed Miliband asked the Prime Minister what advice he would give Mr Howes and his wife who, despite trying, have been unable to find the extra hours of work they need.

Mr Cameron avoided addressing the key point that because of the economic downturn many people simply can’t get extra hours from their current employer or find alternative employment and instead reiterated the government’s position that the cuts to tax credits were ‘fair’.

Tim Howes is a delivery driver for a major national supermarket. He works 20 hours a week, 4 hours over five days from 5.00pm until 9.00pm. Tim’s wife Sam used to work in a supermarket as well, but found that their hours of work clashed and that childcare was very difficult to arrange, so Sam had to give up her job last year. Since then Sam has been looking for a job that will fit in with school hours so that she can be there for their 3 school-age children, but she has been unable to find one as employers require total flexibility which she is not able to offer.

Tim says “I have approached my employer to increase my hours but have been told that there simply isn't the hours there. In fact most of my work colleagues are on part time contracts. I would love to work full time!”

“My family at the moment is just about keeping its head above water, with myself the only earner. I feel this cut in working tax credit and just not being able to secure four extra contracted hours a week could finally be the last straw.”

John Hannett, Usdaw General Secretary said:

“Once again the key point that Usdaw and other organisations are making has been missed by the government. Couples faced with losing their Working Tax Credit are desperately trying to find extra hours of work or other jobs but because of the economic situation they are simply unable to do so.”

“Ed Miliband met with Mr Howes and other Usdaw members affected by the changes this morning and I hope both David Cameron and the Chancellor George Osborne will do likewise and respond positively to the request to meet affected families we made yesterday.”

“I’m sure that before making a final decision that will consign thousands of families to poverty, they will wish to listen to the problems couples are facing in finding extra hours of work, and the consequences of the loss of nearly £4,000 from families only just getting by on incomes around £18,000.”

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