Cuts hit low paid hardest

OLDHAM MP Michael Meacher fears Government plans to slash the welfare budget will hit low paid workers the hardest and force more people out of work.

The Oldham West and Royton MP believes tax credits and disability benefits will be targeted in the £12 billion cull to be announced in next month’s Budget.

Mr Meacher said: “As Government regards pension benefits as out of bounds, the welfare cuts will be mainly concentrated on tax credits and disability benefits. But this will have perverse results.

“Reducing the value of tax credits may well make it no longer economically worthwhile for people on the lowest paid margins to work.”

People claiming out of work benefits is at a 35-year low, and there is not a culture of welfare dependency as the Tories claim, he added.

“There has been significant gain by providing financial support for working households but this is in danger of being eradicated if Government gets its way and victimises those on in-work benefits.”