350 couples with children in part-time work in the Wigan constituency could lose around £4,000 a year from this April, following a change to tax credit rules being introduced by the government.
Lisa Nandy MP is urging the Conservative-led government to reconsider a little-noticed change to tax credit rules which means almost 27,000 families across the North West will lose all of their working tax credits unless they can significantly increase their working hours.
The change means that couples with children earning less than around £17,700 will need to increase the number of hours they work from a minimum of 16 to 24 hours per week or they will lose all their working tax credit of £3,870 per year.
Government figures show 635 children across Wigan will lose out in April.
A recent survey by the Chartered Institute for Personnel and Development found that one in five organisations have cut back on the number of hours that people work as a result of the economic downturn, with just 6 per cent increasing them.
Lisa Nandy MP for Wigan, said:
“This is a deeply unfair change from a government that is increasingly out of touch with parents feeling the squeeze and struggling to juggle work and family life.
“Raising taxes and cutting spending too far and too fast has seen unemployment rise and the economy go into reverse, and many employers are cutting people’s hours. In this climate, very few people in part-time work will find be able to increase their hours by up to 50 per cent. And for a couple with children losing around £4,000 a year, or £75 a week, this change could mean that going out to work makes no sense. That makes no economic sense at all. The government urgently needs to think again.”