MP Teresa Pearce says 2,000 people will lose tax credits in Thamesmead and Erith

9:52am Tuesday 17th April 2012 in Bexley By Jim Palmer

MP says 2,000 people will lose tax credits in Thamesmead and Erith MP says 2,000 people will lose tax credits in Thamesmead and Erith

More than 2,000 families in Erith and Thamesmead will lose all of their Child Tax Credit or Working Tax Credit, according to figures obtained by the Labour party.

Because of changes brought about in the Budget, which came into effect on April 6, the figures revealed up to 1,600 families will lose as much as £545 a year in Child Tax Credit and 410 couples earning less than £17,000 will lose their Working Tax Credit, worth £3,870, if they cannot increase their hours.

Erith and Thamesmead MP Teresa Pearce said: “This is going to make life harder for a lot of my constituents.

"It’s particularly unfair when you consider that in the same Budget [the Government] decided to give people earning over £150,000 a tax cut whilst ordinary people’s incomes are squeezed even further.”

Related links

Comments(2)

j.j. says...
12:43pm Tue 17 Apr 12

Has it not occurred to Ms Pearce the UK needs these people on £150,000+ to pay for the tax credits and to buy the services that lower earners provide. I don't earn that much money, but I hope that the government did more to attract the kind of people who are capable of earning £150,000+ so that people like me lower down in the foodchain will see their living standards improve.

Report this post »

A.Commentator says...
12:05am Fri 20 Apr 12

There is a problem with the remark of J.J. The higher earners are less likely to buy the services of the low earners than people on middle or low incomes, or at least they will spend a much lower proportion of their high earnings in shops on the high street. The wealthy are more likely to save their money or invest it rather than spend it on goods and services that keep ordinary folk employed. This effect even has a technical name 'marginal propensity to consume' which falls with increasing income. An economy is more likely to provide employment for ordinary people when there is greater equality of earnings, because then more of the country's earnings is actually spent, rather than saved.

Report this post »

click2find

About cookies

We want you to enjoy your visit to our website. That's why we use cookies to enhance your experience. By staying on our website you agree to our use of cookies. Find out more about the cookies we use.

I agree