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Harlow MP Robert Halfon stands firm over Working Tax Credits

Politics / Tue 27th Oct 2015 at 06:32pm

HARLOW MP Robert Halfon has stood firm over the Conservative government policy on Working Tax Credits.

Mr Halfon said:

“I support the tax credit reforms based on three key principles:

1. All low earners in Harlow get a fair deal
2. A fair deal for all tax payers
3. To move from a high welfare, high taxes and lower wages to lower welfare, lower taxes and higher wages for everyone

That all low earners in Harlow get a fair deal

From next April, the introduction of a National Living Wage will mean a £900-a-year pay rise for someone working full-time on the minimum wage. By 2020, it will reach more than £9 an hour, worth at least £4,800 a year extra in cash terms. Taking tax and benefit changes into account, it means a renting family with two children, and where both parents work 35 hours a week, on the minimum wage will see their income increase in cash terms by more than £5,500.

I am pleased that the increases in the personal allowance have already saved the typical basic-rate taxpayer £825 a year. Additionally, the National Living Wage has a wider ripple effect and the independent Office for Budget Responsibility expects six million people in total to get a pay rise as the new National Living Wage imposes upward pressure on wages further up the scale.

To give some further examples:
• A couple with two children where only one parent is in work on the current National Minimum Wage will see their income increase by £2,480.
• A lone parent with one child working 35 hours at the current National Minimum Wage will see their income increase by £1,550.
• A family with two children where both parents are working 35 hours a week on the National Minimum Wage will see their income increase by £5,570.
• A single person with no children working 35 hours on the current National Minimum Wage will see their income increase by £2,110.

To ensure that all hardworking people are protected, the Chancellor has announced that in the Autumn Statement there will be further measures set up to help low earners affected by these changes.

Please find the links to the Hansard and a video of the speech here below:

http://www.parliament.uk/business/publications/hansard/commons/todays-commons-debates/read/unknown/7/

http://www.telegraph.co.uk/news/politics/11956879/Tax-credits-cuts-George-Osborne-defeated-by-House-of-Lords-live.html

A fair deal for all Harlow tax payers

Tax credits are currently costing the country £30 billion plus a year. The current tax credit system is so big that even some MPs (not me!) are getting tax credits.

If we do not reform the system, it means the tax bills are likely to go up by £500 a year for Harlow residents, simply because of the cost. Without reforms, tax credits will cost the tax payer £40 billion a year.

To move from a high welfare, high taxes and lower wages to lower welfare, lower taxes and higher wages for everyone

Over many years as the MP for Harlow, I have campaigned for the national living wage, lower fuel duty and lower taxes for lower earners. The Government is doing all these things.

The new National Living Wage of £7.20 an hour comes into force in April 2016. The tax credit cuts for lower earners means that workers on the minimum wage up to £12,500 annually will not pay income tax. The fuel duty freeze means that typical motorists will each save £9 every time they fill their tank.

We have to move away from the high welfare, high tax, low wage economy ‎that Labour created to one that offers the opposite: lower welfare, lower taxes and higher wages for all. From a hand-out society to a hand-back country, where taxpayers keep more of the money they have earned.

That means reining in a system that taxed people ever higher amounts, then recycled their money through a complicated and often inefficient tax credits system that gave them some of it back, while subsidising low-wage employers. Reforms will offer working people the most important thing of all: the jobs and economic security that come from a country that lives within its means.

The tax credit savings will leave more money to spend on our schools and hospitals. For an example, this is why the Government has been able to pledge an extra £10 billion to our NHS.

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