Gingerbread response to House of Lords vote on tax credits

Posted 27 October 2015

House of Lords votes to delay implementation of tax credit reform that would hurt single parents.

Responding to last night’s House of Lords vote on tax credits Gingerbread Chief Executive Fiona Weir said:

“We are pleased that the House of Lords voted to delay plans that would have hit single parents hard, especially low income working single parents.

“We hope that the government will now use the opportunity to pause and consider alternatives.

“Both the Treasury Select Committee and the Work and Pensions Select Committee have sought a comprehensive impact assessment of cuts to tax credits, and it is vital that the government now produces one.

“Our own comprehensive analysis, and that of a number of other organisations, shows clearly that the poorest in society, including many low income working families, would be hardest hit [1]. Indeed, some 1.3m of Britain’s two million single parents faced a substantial loss in earnings by 2020.

“What we now want to see is detailed modelling by the government to fully consider the impact of tax credit cuts. This must consider the relationship between wages, tax and tax allowances, National Insurance and means-tested in-work support for families with children, and assess both the impact on different family’s income as well as incentives to work and to progress in work.

“Once this modelling is published there needs to be an open public debate about the impact of different policy choices before new proposals are brought forward.”


Notes to editors

[1] Gingerbread (2015) Paying the Price: The impact of the Summer Budget on single parent families.

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