Changes to childcare tax credits a real concern

The changes made to the childcare tax credits due to be in force in 2013 could cause some parents to lose 94p for each additional pound they earn, says a report from the Resolution Foundation. The injustice of low-paid, by working extra hours, losing out was promised by Mr. Cameron to be ended. A spokesman for Mr. Cameron said the policy was still in the works.

The governments plan to change the complex benefit system in Britain and include a single Universal Credit for lone parents. This flagship policy is meant to eliminate the benefit trap and make your pay packet worthwhile. In his speech to the Conservatives he said the plan was end the injustice once and for all of single mothers who are low paid losing close to 96p for each extra pound earned.

But the Resolution Foundation report casts a doubt on his claims suggesting the government will fail its own litmus test for on the welfare reform by putting people off. This would be another blow to already difficult living standards and would further hit working families hard. Only £3 a week more would be earned by a single parent on minimum if they were to work four days instead of three.

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