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'Government's benefit cuts will make 14,000 working families in Tower Hamlets worse off'

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'Government's benefit cuts will make 14,000 working families in Tower Hamlets worse off'


Published by Anonymous for in Central Government and also in Finance, Housing, Local Government

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The Goverment's decision to cap benefit increases at 1% will leave 14,000 working families in Tower Hamlets worse off, Labour has claimed.

Chancellor George Osborne announced the cap in his November Autumn Statement. Even though Mr Osborne announced a rise of 1%, with inflation currently being a 2.6%, it actually represetents a cut in benefits.

Tower Hamlets Labour Party has said that local people with full-time jobs rely on tax credit to top-up wages that don’t meet the cost of living in London, and that the cut will put hardworking families at risk of falling below the poverty line as rents, transport and energy bills continue to rise.

Labour’s Deputy Leader, Cllr Motin Uz-Zaman, said: "To hit 14,000 of the hardest working families with another round of cuts is totally unfair. David Cameron wants people to think these cuts are aimed at ‘shirkers’ and ‘scroungers’ but it is clear that they will actually hit families working every hour they can and still struggling to get by.

"With the cost of living in London sky rocketing, families working long hours on the minimum wage still need help to make ends meet. It’s outrageous that David Cameron and George Osborne think it is right to cut support for hard working families at the same time as giving millionaires a tax cut."

Labour MP for Bethnal Green and Bow, Rushanara Ali, said: "George Osborne’s announcement in the autumn statement is another painful blow for residents in Tower Hamlets. The Institute for Fiscal Studies says that across the country one earner families with children will on average be £534 a year worse off by 2015. Yet 8,000 millionaires will get an average tax cut of over £107,000 next April.

"There is nothing fair about making working families pay the price for this government’s economic failure, George Osborne must reverse course and adopt Labour’s plan for jobs and growth."


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