Chancellor George Osborne plans to cut Tax Credits has taken a major blow, after concerns have been raised of the impact these cuts will have.
Conservative MP’s have been left angry after a defeat by the House of Lords stalling Government’s plans to cut Tax Credits.
Though ‘transitional help’ has been promised to assist those affected by the Chancellor’s plans, the Institute for Fiscal Studies has advised that these changes would leave some 3 million people worse off.
Tax Credits and Child Tax credits were introduced during the last Labour government, assisting low-paid households. The Chancellor’s plans would see the threshold to receive Tax/Child Tax credits cut from April 2016, leaving low earners up to £1,300 worse off a year.
Chris Grayling, commons leader, has confirmed that full details of the change in Tax Credit relief will be announced in the Chancellor’s Autumn Statement at the end of November.
