Families with children will lose an average of £511 a year from the UK Government's changes to tax, benefits and tax credits according to new figures from the Institute for Fiscal Studies.
The analysis follows last month's Budget and is on top of tax rises already introduced, like last year's VAT rise which is costing a family with children an average of £450 per year.
Further information on the affect of Tax Credit changes in Cardiff West reveals:
• 900 families on modest and middle incomes will lose all of their Child Tax Credit – worth around £545 per year.
• And up to 435 working couples earning less than around £17,000 per year will lose all of their Working Tax Credit – worth up to £3,870 per year – if they cannot increase their working hours.
“Families on middle and low incomes here in Cardiff West are facing a tax credits bombshell from David Cameron and George Osborne," said Kevin Brennan.
"It is disgusting that hard working families with children will now be an average of £511 a year worse off while millionaires have received a tax cut after George Osbourne reduced the top rate of income tax.
"Families were already finding it tough after the Government increased VAT last year which is costing a family with children an average of £450 per year.
"These cuts to tax credits for parents on middle and low incomes are unfair and simply another broken promise made by David Cameron during the general election campaign."
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