Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Tax credit cuts: Millions of families to lose £1,000 a year as cuts passed despite threat from Tory rebels

Government secured a majority of 35 for the cuts, which will take effect from April

Nigel Morris
Wednesday 16 September 2015 08:39 BST
Comments
Chancellor of the Exchequer George Osborne and Prime Minister David Cameron laugh as Labour party leader Ed Miliband responds to his Budget statement to the House of Commons
Chancellor of the Exchequer George Osborne and Prime Minister David Cameron laugh as Labour party leader Ed Miliband responds to his Budget statement to the House of Commons (PA Wire )

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Deep cuts to the tax credits of millions of families have been approved by the Commons after a threatened rebellion by Conservative MPs faded away.

Some three million families will lose around £1,000 a year under a measure which was bitterly condemned by Labour’s new leadership team. The shadow Chief Secretary to the Treasury, Seema Malhotra, described it as “arguably the biggest single cut to families’ income ever implemented by a government”.

Some Tory MPs feared a backlash from constituents when their income is sharply reduced. But in the end, the Government secured a majority of 35 for the cuts, which will take effect from April.

Damian Hinds, the Treasury minister, said the move was essential to help reduce the national deficit. He argued that the Government’s overall package of economic reforms would eventually leave most households better off.

But Labour’s former welfare reform minister, Frank Field, claimed that Mr Osborne had “destroyed his 2020 election strategy” because the issue would “catch fire” across the country as the cuts were implemented.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in