Tax credit cuts

CUTS to tax credits could leave over half of families struggling in Caerphilly County Borough. George Osborne announced plans to restrict tax credits payments which are paid to families on low income. Universal Credit payments will also be limited to two children while tax credits and working age benefits will be frozen for four years. This would be a cut in benefits. Fifty-eight per cent of families in Caerphilly Borough have children in receipt of tax credits, with 24,900 children dependent upon it. Charity Barnardo’s Cymru had urged the Government not to cut the lifeline benefit as part of plans to save £12bn from the welfare budget. Without this income, many parents could not afford their weekly food shopping let alone school uniforms and books. With low wages and high living costs stretching budgets, tax credits are an everyday lifeline for families in Wales. Last year Labour signed up with the Tories to cut £12bn from the welfare budget, while Plaid Cymru was one of the anti-austerity parties who campaigned against these cuts. Before the election, both Tories and Labour failed to tell the public where they would cut and even today Labour still haven’t offered an alternative to the cuts they voted for.