Justin Madders

Working Hard for Ellesmere Port & Neston

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Justin condemns Conservative cuts to Tax Credits

Labour MP for Ellesmere Port & Neston, Justin Madders MP has condemned cuts to Tax Credits implemented by the Conservative Government today (15th September 2015). Justin voted against the Statutory Instrument moved by the Conservatives, but the measure passed with a majority of 35 votes.

The measure, which amounts to a cut of £4.4 billion in 2016-17, will hit families by an average of £1,000 per year. In Ellesmere Port & Neston, 5,400 families with children, including 3,900 working families with children are in receipt of Tax Credits, representing half of all local families.

When responding to questions regarding the cuts to Tax Credits and their impact on low income families, Ministers have pointed to the introduction of a higher minimum wage (the ‘National Living Wage’) to suggest that families will benefit from the Budget changes, and that work incentives will be strengthened. However, the latest report from the IFS indicates that tax and benefit changes (namely tax credits cuts) will far outweigh any benefit from the new NLW, stating that the NLW will account for just 13% (£150 per year) of the total cuts to tax credits and other benefits (£1,090 per year), on average.

Commenting, Justin said:

“This is a measure which will hit low-paid working families incredibly hard and will cause many families in Ellesmere Port & Neston to fall into poverty. Some families with three children with lose over £2,000 per year, while many others will lose over £1,000. With budgets already stretched, families that I have spoken to just don’t know where this money will come from.

Despite Government claims, the so-called Living Wage will not come close to compensating families for what they will lose, will not have any impact for a number of years and of course those under 25 will not benefit at all.

I have real concerns about what the impact of these measures will mean and I will do all that I can to argue for more support to be provided to local children and families.”

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