Tax Credit cuts for 2016 rejected
Changes to tax credits, due to be introduced in April 2016 and 2017, have been delayed after not being approved by the House of Lords.
Who would the Tax Credit Cuts affect?
The proposed changes were predicted to hit financially vulnerable people the hardest. This was further underlined through an independent report by the Institute for Fiscal Studies.
“An analysis by researchers at the Institute for Fiscal Studies finds that the package of changes to tax, tax credits and benefits will reduce household incomes significantly, particularly for those towards the bottom of the income distribution.”
Institute for Fiscal Studies
After the decision Chancellor George Osborne signalled that he would listen to opposition comments regarding the cuts and potentially amend the initial proposals. This comes after another decision to support pausing the changes until independent analysis was carried out on the impacts of the proposed cuts.
Letters were scheduled to be sent out by the government in December detailing the changes until they were rejected.