Last night, peers voted 307 to 277 in favour of a motion put forward by Baroness Meacher to put on hold Government plans to cut tax credits next year because the Government has not responded to an analysis by the Institute of Fiscal Studies that showed that three million families would lose £1,000 a year.
They also voted in favour of a motion tabled by the former Labour social security minister Lady Hollis insisting the Government provide all low-income families and individuals currently receiving tax credits with three years compensation.
The Children’s Society and Child Poverty Action Group (CPAG) have welcomed the Lords’ decision to delay the changes, which would see the income threshold for those claiming Child Tax Credit cut from £16,105 to £12,125 a year and the threshold for Working Tax Credit from £6,420 to £3,850 as of April 2016. However, they are now urging the Government to make sure work pays for hard-working families.
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