Tax credit cuts to hit poorest regions in UK

18 November 2015

Research from the Trade Union Congress (TUC) unveils that George Osborne’s tax credit cuts will affect Britain’s most vulnerable families in its poorest regions.

According to this analysis, more than nine in ten (91 per cent) working tax credit households in the UK will suffer from the government’s cuts, which illustrate the average loss in each part of the UK.

Losses in Northern Ireland will be the worst, where average income per head is the lowest in the UK, the average loss to working tax credit claimants will be £1,480 – the highest of any UK nation and region.The TUC estimates that over £4.5bn will be lost from working recipients of tax credits across the UK as a result of the cuts.

Frances O’Grady, the TUC’s general secretary, said:

“This research makes clear that as well as making families suffer, the tax credit cuts will make regional inequalities worse. The households who will lose the most are those already in low-income areas.”

The TUC is calling on the chancellor to reject plans against tax credits cuts in next week’s spending review as they fear it will be harder for poorer families to make up the lost income through taking on more or better-paid work in areas where wages tend to be lower.

The chancellor has promised to look again at his tax credit proposals after they were rejected by the House of Lords.

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