Home / News / Tax Credits Cuts Scrapped

Tax Credits Cuts Scrapped

George Osborne Budget 2015
Loading 

Working families all over the UK breathed a sigh of relief yesterday when the Chancellor, George Osborne, announced the controversial planned changes to Tax Credits would be scrapped.

Tax Credit Cuts

George Osborne announced the plans to change tax credits, which could see thousands of families financially worse off, earlier this year. However, the proposals outraged working families and The House of Lords historically voted against the changes, forcing Mr Osborne to put his plans on hold. The move will have typically cost each working family claiming tax credits, around £1,300 per year, but Mr Osborne was forced to make a U-turn on his plans.

He announced in Parliament yesterday: “I’ve listened to the concerns. I hear and I understand them and because I’ve been able to announce today an improvement in the public finances, the simplest this to do is not to phase these changes in  but to avoid them altogether”

Spending Breach

This turn around will mean the chancellor will now breach the  cap on welfare by £4billion in the first year, the annual cap for the welfare budget being £120billion, which will mean that George Osborne’s plans to eliminate the UKs deficit, will be sent off course.

Other changes

Other changes that were announced were that the police would not face any cuts, a fear which had been looming for some time. Chief Constables were expecting a further cut of 20% to their funding, causing concern they would not be able to respond to any large scale emergency such as the Paris terror attacks, however, they were relieved to see their budget totally protected.

Council tax is expected to be raised by around £250 per year per household in order to fund the tax credit U-turn, but Museums across the UK will remain free, despite some complaints that taxpayers were funding foreign tourists.

Another interesting change which could come into effect is the banning of cash payouts for minor whiplash claims caused by car accidents, in a bid to end the high insurance premiums motorists are currently paying.

 

 

GD Star Rating
loading...

Share

Comments

About Rebecca Robinson

Profile photo of Rebecca Robinson

About Rebecca Robinson

After spending the last 8 years juggling life as a mum of two, wife and working full time as a Project Manager for a global telecommunications company, Rebecca Robinson made the decision to follow her love of writing and took the plunge; turning her passion into a full time career. Since becoming a full time writer, Rebecca has worked with various media and copy-writing companies and with the ability to make any topic relevant and interesting to the reader, now contributes to The Working Parent on articles ranging from credit cards to teenage relationships. Ever the optimist, Rebecca's dreams for the future include a house in the country filled with children, dogs and horses in the field!

Website: Rebecca Robinson

View all posts by