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Report on Tory tax credit cuts is wake up call
Wednesday, 29 December 2010

Yet Labour happy to be spokespersons for Tory control of welfare

SNP MSP Bob Doris has commented on the new figures published today (Wednesday) by the think tank, Resolution Foundation, which show that more than 40,000 working families in Scotland are set to lose an average of £420 a year in support for childcare costs from April next year due to the Tory/LibDem changes to the childcare element of the Working Tax Credit. The report has also suggested that some families could lose as much as £1,300 a year.

Mr Doris - the Deputy Convener of the Scottish Parliament's Local Government and Communities which has responsibility for anti-poverty measures - said: "This report should be a wake up call to those who are happy to let the Tories and LibDems run Scotland’s tax and welfare system. Yet Labour is more than happy to be a spokesperson for Tory control and the Tories’ flawed devolution tax plans.

"Without moving the full responsibility for our social and economic wellbeing to the Scottish Parliament from Tory dominated Westminster we will all be fighting poverty with one hand behind our backs.

"Improvements in childcare, preventing people being caught in a poverty trap, regulation of credit and measures to ensure everyone has access to a decent pension are all policies the SNP would like to see implemented.

"However without the powers to introduce them or to generate and access the wealth we need to pay for anti-poverty measures Scotland is stuck with the prospect of Tory cuts to services that affect the most vulnerable."

Notes:

The list of Scottish local authorities from the Resolution Foundation press release is as follows:

Impact of cuts to childcare element of Working Tax Credit by Local Authority:

  • Scotland, 41,140 families, £420 average loss
  • Aberdeen City, 1,280, £454
  • Aberdeenshire, 1,330, £384
  • Angus, 910, £392
  • Argyll and Bute, 560, £388
  • Clackmannanshire, 340, £421
  • Dumfries and Galloway, 970, £372
  • Dundee City, 1,690, £482
  • East Ayrshire, 900, £410
  • East Dunbartonshire, 810, £435
  • East Lothian, 810, £375
  • East Renfrewshire, 630, £419
  • Edinburgh, City of, 3,020, £405
  • Eilean Siar (Western Isles), 150, £362
  • Falkirk, 1,180, £419
  • Fife, 2,570, £413
  • Glasgow City, 5,910, £423
  • Highland, 1,600, £386
  • Inverclyde, 560, £395
  • Midlothian, 830, £413
  • Moray, 550, £395
  • North Ayrshire, 1,230, £449
  • North Lanarkshire, 2,700, £460
  • Orkney Islands, 110, £372
  • Perth and Kinross, 1,260, £384
  • Renfrewshire, 1,880, £434
  • Scottish Borders, 840, £343
  • Shetland Islands, 120, £339
  • South Ayrshire, 770, £410
  • South Lanarkshire, 2,500, £447
  • Stirling, 620, £391
  • West Dunbartonshire, 1,020, £436
  • West Lothian, 1,490, £451

The Resolution Foundation is an independent research and policy organisation working to improve the lives of low-to-middle earners – a group that is below median income, but not heavily reliant on state support.  There are six million low-to-middle earning households in Britain, containing 11 million adults.  Though not the poorest in society, this group experiences a unique set of pressures, including many of the problems more commonly associated with poverty, from financial insecurity to a struggle to keep up with day-to-day living costs.

Over 2 million people in Britain receive Working Tax Credits (WTC), mean-tested payments provided by the government to boost the incomes of households on low incomes.  470,000 households receive the childcare element of WTC, which provides support for childcare costs.  Most are on incomes below £30,000.  The planned reduction in support will save the Government £270m next year, rising to £385m in 2014/15.

Analysis of losses to families are based on the latest data published by HMRC, from 2008.  Since WTC payments rise year on year, real losses in 2011 are likely to be higher.

Survey finding that as many as one in three working parents are considering giving up their job because they feel unable to cope with childcare costs conducted by Computershare Voucher Services (CVS), polling 1,000 working parents.

 
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