Tax credits could change everything. At present, the discontent over the upcoming in-work credits cut is bubbling. However, it shows no sign of simmering down.
The reasons are clear. There is a desire by the government to bring down the cost of welfare. They argue it’s too high and that focus must be on removing people from dependency and into employment. There is, of course, merit to this argument. The bill is high and the positive benefits of work go well beyond simple financial reward. This is not an uncommon point of view.
The government claims that their move to slash in-work assistance is mitigated by their push to introduce a higher threshold before tax is deducted, and a higher minimum wage. Which is great, if it were all true.
The cut to in-work help harms those on low incomes in work
The reality, which is becoming clearer, is that a mooted living wage is some way off for many. And that the cut to in-work help harms those on low incomes in work – the people who want to do right, to stay employed, to feel the benefits of being part of a labour force.
Many of these people, outside of Scotland, believed the Tories when they said they could be trusted with the economy and that they wouldn’t cut tax credits.
But while there is clever government rhetoric on social justice and being the party for the workers, the reality tells a different story.