New Clause 1 — Repeal of Tax Credits Regulations 2015

Part of Welfare Reform and Work Bill (Programme No. 3) – in the House of Commons at 1:30 pm on 27th October 2015.

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Photo of Owen Smith Owen Smith Shadow Secretary of State for Work and Pensions 1:30 pm, 27th October 2015

Why on earth have the Government not conducted any sort of analysis to illustrate the benefits to our society and economy that those 700,000 carers are contributing? We all know in our hearts that they are making an enormous contribution, and we all know in our heads that they are precisely the people who are going to lose out. It is working mothers, carers and people who cannot expand their hours who are going to lose money, but they are doing the right thing; they are in work, striving hard. They might well be better off if they were not, and the crazy thing about the Bill is that in future they will be better off not working so hard. The work penalty and the disincentive to engage in extra hours and work harder, even once people have a higher than minimum wage, is screaming out at the heart of the Bill. It is a fundamental economic error, and it is being done for ideological purposes. The Tories are seeking to present those people—working people—as scroungers, and they are trying to present tax credits as benefits and a bribe.