Edinburgh East MP and Work and Pensions Select Committee member Sheila Gilmore today released figures showing that 25,000 families on tax credits in Edinburgh will be hit by George Osborne’s ‘Strivers’ tax.
Working families in Edinburgh will be amazed that George Osborne is asking them to pick up the tab for his failure at the same time as he gives a tax cut to millionaires.
25,000 working families on tax credits in Edinburgh are facing a strivers’ tax because this government has failed on jobs and growth.
Liam Byrne MP, Labour’s Shadow Work and Pensions Secretary, said:
No growth, more debt, higher unemployment, this government is failing and once again Britain’s strivers are taking the hit.
Last month this government admitted their Work Programme is worse than doing nothing, leaving millions locked out of work and pushing the benefit bill through the roof – an eye-watering £13.6bn higher than expected.
To pay down the price of that failure they are raiding the budget of their own Universal Credit programme which was supposed to make sure you’re always better off in work. Instead the scheme will lock in George Osborne’s ‘strivers’ tax’.
Ed Balls, Labour’s Shadow Chancellor, said:
Taking into account everything George Osborne announced in the autumn statement, the Institute for Fiscal Studies says that one earner families with children will on average be £534 a year worse off by 2015. Yet 8,000 millionaires will get an average tax cut of over £107,000 next April.
There is nothing fair about making striving working families pay the price for this government’s economic failure, while George Osborne gives a £3 billion tax cut to the richest earners in the country.
- Figures for families in Edinburgh can be downloaded here.
- According to the Resolution Foundation, more than 6 in 10 households affected by the 1% uprating decision are in work.
- Data released by DWP last month showed that the Work Programme placed only 2% of participants into a job. According to the DWP’s own estimates, 5% would have been placed into jobs if no policy were in place. See
- Cuts to tax credits, including uprating by CPI, will total £14.6 billion over the course of this parliament.
- Sheila Gilmore is a member of the Commons Work and Pensions Select Committee. You can view the committee’s website here.
- For more information please contact Matt Brennan, Parliamentary Assistant to Sheila Gilmore MP, on 020 7219 7062, 07742 986 513 or email@example.com.