Scots Working Families 'Could Lose £700m'

A freeze on tax credits could affect households with working parents

Holyrood Is demanding a halt to millions of pounds of welfare cuts by the UK Government.

Figures released today show working families in Scotland could lose out on £700m under proposals to freeze tax credits. One-child households with an income of less than £26,000 per year, and two-child families earning less than £32,200 are eligable for the benefit, claimed by around 22,000 families in Fife. Around 70% of children in the Kingdom live in families claming tax credits.

Social justice secretary Alex Neil said: "The shocking reality of the UK Government’s budget is that it will widen the poverty gap and push more families into desperate situations.

"To date, the UK Government’s austerity agenda has led to unacceptable levels of inequality, including child poverty, with the Institute of Fiscal Studies reporting this week that two thirds of children in poverty live in working households. Tax credits can be a lifeline for families on low incomes that rely on them to get through daily life, put food on the table, heat their home and pay their bills.

"By cutting tax credits, households across Scotland will be faced with nearly £700 million cuts and additional worries and stress about caring for their families."

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