6,200 In Neath Constituency Hit By Tax Credit Cuts

Local teachers, nurses and police constables are amongst 6,200 working people and their families hit by the Government’s tax credit cuts of up to £534 a year according to their MP Peter Hain.

Citing new House of Commons Library figures for the Neath parliamentary constituency, Mr Hain attacked the Government’s new Benefits legislation for the way it was hitting hard-working people.

‘The Government has dishonestly pretended it is just so-called “benefit scroungers” are who being hit when in fact it is what the Tory-Lib Dems call “strivers” – people who work hard and play by the rules who are being hit. There are 6,200 of these “strivers” in our towns and valley communities alone: individuals and families who rely on tax credits to live day-to-day, to buy necessities like food and to pay heating bills. Add this to the chaos that has been caused by changes and big cuts to disability benefits and housing benefit which are already affecting thousands more Neath residents and this makes for a disaster for people struggling to get through tough economic times.‘

‘Two thirds of all those hit by the benefit cuts are women, many pregnant or with children, half of whom are clinging onto jobs trying to cope with rising child care bills. Some will lose up to £1300 each. It is outrageous,’ he said.

Mr Hain added: “The Citizen’s Advice Bureau has already reported back a number of problems relating to benefit and tax credit reforms being rushed through, this government is simply not considering the consequences of its actions and the misery that is being caused.”

Tax Credit Bombshell To Hit Hundreds In Neath

Nearly two hundred Neath households with children could lose around £4,000 a year from this April following a change to tax credit rules being introduced by the Government, a move Neath MP Peter Hain has said will make life harder for parents struggling to make ends meet.

Mr Hain is urging the Conservative-led government to reconsider a little noticed change to tax credit rules which means thousands of families will lose all their working tax credits unless they can significantly increase their working hours.
The change means that couples with children earning less than around £17,700 will need to increase the number of hours they work from a minimum of 16 to 24 hours per week or they will lose all their working tax credit of £3,870 per year.

Government figures have revealed that 185 households in Neath including 365 children could lose out. Across Wales 9,380 households with 18,985 children will be affected.

Mr Hain said, “This is a tax credits bombshell and it’s just around the corner. With ten people chasing every vacancy in the area and many employers cutting people’s hours how does this government expect people to increase their working hours?”

A recent survey by the Chartered Institute for Personnel and Development found that one in five organisations have cut back on the number of hours that people work as a result of the economic downturn, with just 6 per cent increasing them.