Saturday, 21 February 2009

TAX CREDIT WHAMMY FOR LOW PAID FROM LABOUR PARTY DOWNTURN.



TAX CREDIT WHAMMY FOR LOW PAID FROM LABOUR PARTY DOWNTURN.

SNP Work and Pensions spokesperson, John Mason MP, has called on the UK government to look at revising the threshold for Working Tax Credits (WTC) warning that low income workers are now missing out on the tax credit because they have had their hours cut as a result of the recession.

The Working Tax Credit (WTC) is intended to “help make work pay” for lower income workers. For people with children and disabled people, WTC is payable if the person works 16 hours or more a week. For others, the threshold is 30 hours a week, however, as a result of the recession many workers have had their hours cut and now face a “double whammy”.

Mr Mason, the SNP MP for Glasgow East, said:

”For low paid workers to lose hours at work and then be punished by the UK government by having their Working Tax Credit entitlement withdrawn is clearly a double whammy.

”Working Tax Credits are supposed to help make work pay, but clearly the reality of the recession is having an impact on peoples employment and the UK government must look at revising the threshold.

"Just like Labour’s 10p tax fiasco these ridiculous rules are hammering those on low incomes especially hard, and is further compounded by the recession. Instead of helping the less well off and the vulnerable Labour’s tax credit rules are punishing them.

“The tax credit system is patently not working, and I am urging Ministers to sort it out.”

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