Tuesday, April 22, 2008

Government benefits system penalises low earners

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.”
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