House of Lords votes in support of government plan to reduce tax credit threshold.
Last night the House of Commons voted in favour of the government’s plans to cut the earning threshold for tax credits from £6,420 to £3,850. Gingerbread is very disappointed at this outcome, and believes the cuts will disproportionately affect single parent families who are already struggling to make ends meet.
Chief Executive Fiona Weir said: “This is a further blow for hard-working families and undermines the government’s commitment to make work pay.. We hope that mitigating action will be taken to ease the impact on the worst hit before the cuts are made next year.
“The reality of last night’s vote is that single parents working full-time will now be in a similar position to non-working single parents in 2010, who earned 65 per cent of what the public considers necessary for a decent standard of living. We therefore call on the government to deliver on its promise to support low income working families.”