Tax credit changes ‘don’t make policy sense’

working tax credits

working tax creditsMany of us parents work on a part-time basis in order to juggle family commitments with our duties to our employers.

And now those of us who are in part-time roles could receive a benefits boost in the weeks to come, as Labour has highlighted an anomaly of the Government's reforms to the welfare system.

The opposition party indicates that from next month, the average parent in a part-time role could be up to £700 better off a year thanks to forthcoming benefit changes.

The party has noted that from April, the working tax credit threshold is due to rise from 16 hours a week to 24 hours.

Ann Coffey, the Labour MP for Stockport, said the Government's reforms do not appear to "make sense in policy terms" in this area.

She warned that families might prefer to stay at home and claim benefits, as a result of the proposals.

Ms Coffey made her concerns known to Work and Pensions Secretary Iain Duncan Smith in the House of Commons.

In a question to Mr Duncan Smith in the Commons, Ms Coffey said: "Why are you introducing changes to the working tax credit this April that will make the same family £728 worse off than an equivalent family not working? It doesn't seem to make sense in policy terms."

Mr Duncan Smith said he supported the changes being introduced by the Treasury, adding the universal credit would make the average family £95 better off if parents decided to work.