Thursday 5 November 2015

The tax credit crunch: How to limit the losses for low-income families

Millions of working families are set to be face a significant fall in income next April as a result of the £4.4bn cuts to tax credits. Many will find it hard to recover these losses by earning more – despite the welcome introduction of the National Living Wage.

What policies could ease the losses facing working families, and how much would they cost? What role should the state have in supporting low-income families and incentivising work as working-age welfare spending is reduced?

At an event in Westminster, the Resolution Foundation presented new analysis setting out policy options for limiting the losses faced by low-income families. Frank Field MP, Tim Montgomerie and Julia Unwin offered their take on the role of the state in supporting families, followed by a Q&A.