Yesterday, the Institute for Fiscal Studies (IFS) called for the UK’s tax credit system to be completely overhauled. Liberal Democrat Shadow Work and Pensions Secretary, Danny Alexander commented:
“Gordon Brown’s pledge to support working families is looking more superficial by the minute.
“The Prime Minister must come clean about the real impact of his Tax Credits system; it gives with one hand and takes with the other. Ending the 10p tax rate means the Government is taking even more from low-income families.
“It is grossly unfair that families who want to work harder have so little to show for it thanks to a system of complex, means-tested benefits.
“The benefits system needs to be radically simplified to ensure work really does pay, instead of trapping families on low incomes.”