Meacher’s ‘poverty’ warning

OLDHAM West and Royton MP Michael Meacher has blasted Government changes to working tax credit rules, saying it will drive people into poverty.

The Labour veteran says almost 3,000 Oldham families will lose up to £3,870 per year in tax credits.

From April 6, couples with children who earn less than £17,700 a year must increase the number of hours they work per week from 16 to 24 to qualify, or they will lose the benefit.

Mr Meacher said the change will significantly affect working mothers and low-income families.

He added: “This Government decision is very silly because the only outcome will be to drive people into poverty and will end up costing the Government more money as a result because many of the people who receive tax credit will become better off if they go on benefits. Couples with children will be especially penalised.

“Even families with disabled children and full-time carers are not exempt from these changes. This unjust change will affect hard-working families who are already finding it difficult to make ends meet. Families would be better off if they gave up work.”

He claimed that nationally 350,000 extra children could be put into poverty by the decision.

Mr Meacher gave the example of a couple who work 16 hours a week earning the minimum wage losing £3,120 from April. If they gave up work they would be £736 a year better off, costing the Government £2,675 a year more.

Mr Meacher added: “This is soul destroying for people who want to work and to help themselves and their families. In effect they are being told it’s better not to work. I am demanding that the Government re-think this appalling decision.”

Oldham East and Saddleworth MP Debbie Abrahams has already hit out at the changes.