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Lord Carey criticises tax credit cuts

  • 12/10/2015
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Our pick of news stories in the media - 12 October 2015

Lord Carey

BBC News – Lord Carey criticises government’s tax credit cuts

Former Archbishop of Canterbury George Carey has attacked the government's plans to cut tax credits, saying hard-working families will be hit. Lord Carey, who backed the benefit cap when Anglican bishops opposed it, urged the government to rethink the cuts in a statement to the Sun and Mirror. 

Another former Archbishop, Rowan Williams, has also signalled his opposition to the move. 

But ministers say it is part of wider plans to raise pay and encourage work and the government has so far resisted calls to alter its plans. 

Under the government's plans, the earnings level above which tax credits are withdrawn will be lowered from £6,420 to £3,850 while the rate at which the benefit is lost as pay rises will be speeded up. The changes are due to come into effect at the end of the year.

Also in the news:

BBC News – Scotland Bill will give benefit ‘top-up’ powers, says Mundell

The Scottish government will be able to "top up" tax credits and child benefit payments as part of new powers coming to Holyrood, David Mundell has said. The Scottish Secretary said the Scotland Bill, currently going through Westminster, would be a "game-changer" ushering in a "new era of devolution". 

The Guardian – Labour to try to scrap Tory tax credit cuts with changes to welfare bill

Labour is to make a fresh attempt to overturn the cuts to tax credits introduced in the summer budget by tabling changes to the welfare bill due to be debated next week. Owen Smith, the shadow work and pensions secretary, said the Labour amendment would give Tory MPs one last chance to reverse tax credit cuts for three million families before they face a storm of protest in their constituencies about the changes when voters’ pay packets are hit next year.

The Guardian – Private sector pay rising at fastest rate for 14 years, says think tank

Britain’s private sector workers are enjoying the fastest real wage growth in 14 years, with pay deals picking up as inflation hovers close to zero, according to a leading think tank. Analysis by the Resolution Foundation suggests that private sector wages rose at an annual rate of up to 3.6% in the three months to August, due to rising wages and flat living costs. That would be the fastest growth since 2001 if it is confirmed in official figures to be published on Wednesday.

 

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