Changes to the Tax credits system will have a major impact on residents in the Merthyr Tydfil and Rhymney area according to Local Labour MP for Merthyr Tydfil and Rhymney, Gerald Jones.
Gerald is keen to highlight the impacts that the cuts to Tax credits will have on working people across the constituency.
Changes to the Tax Credit System will mean that families in Merthyr Tydfil and Rhymney are set to lose hundreds of pound from their weekly budget.” Gerald said.
A recently published report by Bernardos suggested that 4 million families and 7.5 million children across the UK rely on tax credits and that millions of families right across the pay scale will be affected.
A lone parent working full time on the new National Living Wage for 37 hours a week with two young children would lose around £1,200 a year as a result of the changes introduced from April 2016, even after accounting for the increase.
The government often states that employment is the ‘best route out of poverty’ – however the latest figures show 65% of children below the poverty line were in families where at least one parent worked”
The Resolution Foundation suggests that almost 200,000 working families will fall below the UK Governments poverty threshold when the cut takes place next year. Although the government has committed to introduce a living wage, Gerald is keen to highlight that the latest figures already take a higher wage in to account.
It’s important that everyone is aware about the amount of money they stand to lose under the Chancellor’s changes to the system. With one hand he gives and with the other he takes away. Over the next few months I and my Labour colleagues will be campaigning hard to put pressure on the government to change track and support working families.”
Gerald is asking local residents to join the campaign to oppose tax credit cuts by signing Labour’s petition. You can sign by visiting www.labour.org.uk/taxcredits.