'Devastating' Poverty Risks If Tax Credits Cut

A charity says removing 'vital' support for working families would have a devastating effect on income.

Barnardos are concerned about Chancellor George Osborne's plans to cut working tax credits. Over half of children in Scotland in severe poverty live in a working household, while 30-percent live with at least one full-time working adult, according to the latest figures.

Tax credits are paid to parents on low annual incomes to help with the cost of raising their child.

Eddie Follan from the charity says the cuts could leave parents unable to afford to work:

Scottish welfare minister Margaret Burgess MSP said:

"The UK Government should call a halt to £12 billion cuts to the welfare budget which will put more children into poverty.
 
"In 2013/14 350,000 families in Scotland relied on tax credits to boost their incomes with 500,000 children benefitting from this support. Nearly three quarters of these families were in work. It is ludicrous for the UK Government to consider cutting this lifeline for thousands of families, who are already in employment, and it will have a devastating impact on children.
 
"In order to reduce benefit payments and support people into work we need to tackle low pay, create jobs and remove barriers, not take the UK Government approach of removing money which will make it even more difficult for people to feed themselves and their families."