Tax change may push workers to dole

South Wales Argus: Retail workers could be better off on the dole because of tax credit changes brought in under the last Budget, a new report claims Retail workers could be better off on the dole because of tax credit changes brought in under the last Budget, a new report claims

Retail workers could be better off on the dole because of tax credit changes brought in under the last Budget, a new report claims.

Research by the GMB union found that one in five of their members working in the retail sector stand to lose money under new rules which came into effect in April.

Couples earning less than £18,000 a year face increasing their working hours from a minimum of 16 hours a week to 24, or lose their working tax credit of over £70 a week.

The GMB said a survey of 60,000 of its members found that one in five believed the changes would force them on to the dole because work would not be worthwhile.

Over half of those polled said they could lose around £45 a week.

Martin Hird, national officer of the GMB, told the union's annual conference in Brighton: "Around 20% of GMB members working in retail report that they may be better off on the dole after the tax credits changes in the last budget.

"Unless the retail employers are able to reorganise working hours to move these part time workers up to a guaranteed minimum of 24 hours they are going to lose many customers facing experienced skilled workers who will be better off on the dole.

"This change in entitlement criteria for working tax credit cuts across the practice in the sector of not guaranteeing staff proper contracted hours and relying on a flexible response to meet peaks in demand. The full extent of this change has not been felt yet by the employers.

"These continuing attacks on low paid hard working families are even more obscene when at the same time an out of touch Government rewards the wealthiest in our society with unjustifiable tax cuts. The real impact of these changes is that work will not be worthwhile for many of the lowest paid in our society and they will be forced on to the dole - costing us all billions of pounds in extra benefits."

More national news stories

Comments (4)

Please log in to enable comment sorting

1:52pm Sun 10 Jun 12

YorkToff says...

Cheapskate politicians offer little hope for the working classes.

They are even removing the right to a decent retirement by forcing people to work on.
Cheapskate politicians offer little hope for the working classes. They are even removing the right to a decent retirement by forcing people to work on. YorkToff

4:53pm Sun 10 Jun 12

nightwing says...

What do you expect from this goverment, they say they want you to work ,yes but for rock bottom wages.
What do you expect from this goverment, they say they want you to work ,yes but for rock bottom wages. nightwing

5:07pm Sun 10 Jun 12

ponderman says...

Pay me a decent wage and I will work hard for you, otherwise get stuffed cos there's football on the telly and scotch on the table.
Pay me a decent wage and I will work hard for you, otherwise get stuffed cos there's football on the telly and scotch on the table. ponderman

5:31pm Sun 10 Jun 12

YorkToff says...

ponderman wrote:
Pay me a decent wage and I will work hard for you, otherwise get stuffed cos there's football on the telly and scotch on the table.
I agree.

As Noel Gallagher once opined: "There is too much on telly for work."
[quote][p][bold]ponderman[/bold] wrote: Pay me a decent wage and I will work hard for you, otherwise get stuffed cos there's football on the telly and scotch on the table.[/p][/quote]I agree. As Noel Gallagher once opined: "There is too much on telly for work." YorkToff
Post a comment

Remember you are personally responsible for what you post on this site and must abide by our site terms. Do not post anything that is false, abusive or malicious. If you wish to complain, please use the ‘report this post’ link.

click2find

About cookies

We want you to enjoy your visit to our website. That's why we use cookies to enhance your experience. By staying on our website you agree to our use of cookies. Find out more about the cookies we use.

I agree