Teresa slams ‘living wage’ spin and condemns decision to cut tax credits

Teresa red jacket

Teresa has condemned the government’s decision to cut tax credits in Wednesday’s Budget, and has criticised the Chancellor’s spin regarding the introduction of a ‘National Living Wage.’

The cut to tax credits will affect over 3 million people in work. The proposed ‘National Living Wage’ will see working people aged over 25 paid a minimum of £7.20 an hour in 2016 rising to £9 an hour by 2020.

A lone parent with two children working 16 hours at the National Minimum Wage would gain just over £400 from the move to a ‘living wage.’ But they would lose twice that – £860 from the changes to tax credits in 2016/17.

A couple with two children where both work full time at the National Minimum Wage will gain £1560 from the change to the ‘living wage.’ But they will lose over £2,200 from changes to tax credits and not benefit from the National Minimum Wage measure.

Speaking immediately after the budget, Teresa said:

“Today’s budget was not what this country and our area needed.


“While the rise in the National Minimum Wage is welcome, it is not a Living Wage. In fact, when it is introduced the new rate will be lower than the Living Wage this year. What my constituents need is support, not spin.


“Today’s cuts to tax credits outweigh the measures on pay, leaving many families worse off. A family with one earner on average earnings and two children will lose over £2,000 in tax credits next year from the changes announced today.


“Today’s budget was not the budget that the country and my constituents needed. It will leave many of my constituents worse off.”

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