Single parents hit hardest by tax credit cuts

Posted 15 September 2015

Gingerbread comments ahead of parliamentary debate on tax credit cuts.

Ahead of this afternoon’s parliamentary debate on tax credit cuts Gingerbread, the leading charity for single parents, has criticised the government’s plans.

Gingerbread Chief Executive Fiona Weir said:

“The government’s plans to cut tax credits will hit working single parent families who are already struggling to make ends meet. Research shows that single parents will be hit hardest by the changes [1] and that some single parents working full-time will 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 [2]”.

“The combined effect of the Budget will lead to large losses for single parents, having already been the household type hardest hit by previous tax and benefit changes [3]; Record numbers of single parents are in work, but recent analysis confirms that single parents will fall short of the Minimum Income Standard (£274) by £62-a-week under the government’s plans, rising to £86-a-week short of the MIS (£295) by 2020 [4].”

As one single parent who contacted Gingerbread recently said:

“I’m a hard working single mum. I work as much as I can afford to work due to childcare costs. I am worried about what the future holds. At present I have a home. I may struggle if these changes go ahead.

I’ve always been very grateful for the support I get from tax credits, but with all these cuts, you start to feel like you’re being punished.”

ENDS

 

Notes to editors

[1] Elming, W, Emmerson, C, Johnson, P & Phillips, D (2015). An assessment of the potential compensation provided by the new ‘National Living Wage’ for the personal tax and benefit measures announced for implementation in the current parliament. Institute for Fiscal Studies.

[2] Hirsch, D (2015) Will the 2015 summer budget improve living standards in 2020. Loughborough: Centre for Research in Social Policy, University of Loughborough

[3] Institute for Fiscal Studies (2015). Summer Budget 2015: IFS post-Budget analysis.

[4] Hirsch, D (2015) Will the 2015 summer budget improve living standards in 2020. Loughborough: Centre for Research in Social Policy, University of Loughborough

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