Pickles defends tax credit change
Eric Pickles has defended the Government’s plans to cut child tax credits for middle income families, saying dependency had got “further up the economic ladder” than intended.
His comments, made on Sky News’ Murnaghan show, come ahead of the end of tax breaks for parents earning over £50,000.
“It does seem to me that it is a sensible thing to do – I do accept that dependency has got further up the economic ladder, but I do think that where the state is offering substantial help, that should be to the poorest.”
The Communities Secretary's comments come after a new report warned the rising cost of childcare means it is not worth many ‘second earners’ in lower income families to work full-time.
The Resolution Foundation paper to be released this week, reported in the Observer, finds if the second earner takes a job on the minimum wage, childcare costs mean the family can be just £4 a week better off.
Shadow Education Secretary Stephen Twigg has revealed Labour wants to see more co-operative nurseries, which he says could reduce the cost of childcare by £150 a year.