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GMB Congress Says Don't Cut Tax Credits

Sunday, June 7, 2015

GMB Congress Call On Government To Rule Out Cuts To £123.90 Average Weekly Tax Credits For 3.3 Million In-Work Families In UK

Worried families should not have to wait until the budget of July 8th for the Government to rule out cuts in tax credits GMB Congress told.

Delegates to the GMB Congress in Dublin were warned today (Sunday 7th June) that if the Tory Government goes ahead with the projected cut of £40 per week for in-work families in receipt of tax credits, as part of the £12 billion welfare cuts, the loss of income to households and loss of spending power in local economies will be £6.8 billion per year.

The latest figures show that in April 2015 there were 3,277,300 families in the UK getting these in work benefits. Latest figures show that they got an average of £123.90 per week or £6,443 per annum.

The 98th GMB Congress with 500 delegates, representing over 639,000 members from every sector in the economy all over the UK and Ireland, is underway in the Citywest Conference Centre in Dublin from Sunday 7 June to Thursday 11 June 2015. See Notes to Editors below for further details.

GMB Congress was told that a cut of £40 per week in child tax credits (CTC) and working tax credits (WTC) would lead to a loss of income for 417,800 families in the North West and a loss of spending in regional economy of £869 million per year. This is the biggest loss of spending power out of all 12 regions in the UK.

Next biggest loss in spending power would be in London where 408,700 families would face a loss in spending power of £850m, followed by South East where 348,600 families would face a loss in spending power of £725m, followed by West Midlands where 319,000 families would face a loss in spending power of £663m. See Notes to Editors 1 for sources. See the table below for the numbers in receipt of tax credits in each of the 12 region and in the UK, with average weekly amounts paid and amount lost per year to the economy in the area if the cut is £40 per week per family. 

A cut of £40 per week in CTC and WTC would lead a loss of income for 77,100 families in Birmingham and a loss of spending in local economy of £160 million per year. This is the biggest loss of spending power in any area out of all 232 areas in the UK. Set out in notes to editors 2 are the top 40 areas in UK for amount lost per year in area if cut is £40 per week per family. See also GMB website www.gmb.org.uk for 12 regional releases plus the excel sheets with the raw data for all 232 areas. These are set out as pdfs at the foot of this national press release.

FIGURES FOR THE 12 UK REGIONS - RANKED BY LOSS OF SPENDING POWER IF TAX CREDITS ARE CUT BY £40 PER WEEK

 

Total families:

in work families

Average weekly value:

All in-work families

Amount lost per year in

area/region if cut is £40 per week

per family

United Kingdom

3,277,300

£123.90

£6,816,784,000

North West

417,800

£125.02

£869,024,000

London

408,700

£141.25

£850,096,000

South East

348,600

£122.90

£725,088,000

West Midlands

319,000

£127.62

£663,520,000

Yorkshire & The Humber

311,000

£124.10

£646,880,000

East of England

267,100

£121.58

£555,568,000

South West

259,900

£116.94

£540,592,000

East Midlands

252,200

£119.73

£524,576,000

Scotland

250,300

£113.46

£520,624,000

Wales

167,400

£118.54

£348,192,000

North East

148,300

£117.60

£308,464,000

Northern Ireland

112,500

£124.63

£234,000,000

 

Paul Kenny, GMB General Secretary speaking at the GMB Congress, said “The elephant in the Downing Street Cabinet Room is still cuts to in work tax credits.  

The projected cut of £40 per week on average would devastate the household incomes for 3.3 million families that go out to work.

Worried families should not have to wait until the budget of July 8th for the Government to rule out cuts in tax credits.

£40 may be the cost of a large brandy for Cameron but it is bread and butter for many working families.”

End

Contact: Kamaljeet Jandu 07956 237178 or Cath Speight 07506 711925 or Lisa Johnson 07900392 228 or Martin Smith 07974 251722 or Mick Rix 07971268 343 or GMB Press Office 07921 289880 or 07974 251823 or 07918 768773.

Notes to Editors

1 Sources: HM Revenue & Customs, Child and Working Tax Credits Statistics:

Geographical analysis April 2015; Table 3, Recipient families receiving Child or Working Tax Credit in each local authority, April 2015.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/423613/ChildandWorkingTaxCreditsStatistics_geographicalanalyses-April_2015.pdf

Finalised annual awards 2013-14 Geographical Analysis; Table 2 Average number of benefiting families and average annual entitlements in each local authority, 2013-14. https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/430557/cwtc_Finalised_annual_awards_2013-14_GeographicalAnalysis.pdf

2 Top 40 areas in UK for Amount lost per year in area if cut is £40 per week per family

Child and Working Tax Credits Statistics - Recipient in-work families

receiving Child or Working Tax Credit  - April 2015

Average annualised entitlements for in-work families - 2013-2014

 

Source: HM Revenue & Customs

Child and Working Tax Credits Statistics

 
   

Total families: in work families

Average weekly value:

All in-work families

Amount lost per year in area

if cut is £40 per week per family

 

United Kingdom

3,277,300

£123.90

£6,816,784,000

Rank

       

1

Birmingham

77,100

£148.54

£160,368,000

2

Lancashire

69,900

£124.54

£145,392,000

3

Kent

68,900

£122.79

£143,312,000

4

Essex

58,100

£121.04

£120,848,000

5

Hampshire

47,900

£120.31

£99,632,000

6

Norfolk

43,900

£114.54

£91,312,000

7

Hertfordshire

42,400

£123.94

£88,192,000

8

Bradford

42,100

£146.27

£87,568,000

9

Nottinghamshire

41,000

£115.44

£85,280,000

10

Leeds

40,600

£125.56

£84,448,000

11

Lincolnshire

40,500

£114.75

£84,240,000

12

Devon

40,200

£115.19

£83,616,000

13

Staffordshire

40,000

£116.35

£83,200,000

14

Derbyshire

38,500

£113.56

£80,080,000

15

Northamptonshire

38,100

£121.79

£79,248,000

16

Glasgow City

35,500

£119.46

£73,840,000

17

Manchester

35,400

£138.96

£73,632,000

18

Suffolk

34,500

£116.62

£71,760,000

19

West Sussex

33,100

£119.92

£68,848,000

20

Cornwall UA

32,800

£115.58

£68,224,000

21

Surrey

30,800

£123.33

£64,064,000

22

Sheffield

29,700

£125.79

£61,776,000

23

Leicestershire

29,700

£116.23

£61,776,000

24

County Durham UA

28,600

£114.00

£59,488,000

25

Liverpool

28,200

£119.17

£58,656,000

26

Leicester UA

27,700

£132.96

£57,616,000

27

Kirklees

27,700

£133.54

£57,616,000

28

Somerset

27,700

£115.35

£57,616,000

29

North Yorkshire

26,900

£114.23

£55,952,000

30

Worcestershire

26,700

£117.50

£55,536,000

31

East Sussex

26,100

£120.62

£54,288,000

32

Gloucestershire

26,100

£117.21

£54,288,000

33

Cumbria

25,100

£111.52

£52,208,000

34

Newham

25,000

£144.44

£52,000,000

35

Warwickshire

24,300

£117.77

£50,544,000

36

Cambridgeshire

23,000

£116.77

£47,840,000

37

Sandwell

22,900

£129.29

£47,632,000

38

Oxfordshire

21,900

£120.35

£45,552,000

39

Enfield

21,100

£149.79

£43,888,000

40

Nottingham UA

20,600

£128.40

£42,848,000

 

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Additional Resources

Working Family Tax Credits

download 16Kb () - 07 June 2015

Full Table Of Figures

GMB CONGRESS CALL ON GOVERNMENT TO RULE OUT CUTS TO £119.73 AVERAGE WEEKLY TAX CREDITS FOR 252,200 IN-WORK FAMILIES IN EAST MIDLANDS

download pdf234Kb (pdf) - 07 June 2015

Worried families should not have to wait until the budget of July 8th for the Government to rule out cuts in tax credits GMB Congress told

GMB CONGRESS CALL ON GOVERNMENT TO RULE OUT CUTS TO £121.58 AVERAGE WEEKLY TAX CREDITS FOR 267,100 IN-WORK FAMILIES IN EAST OF ENGLAND REGION

download pdf236Kb (pdf) - 07 June 2015

Worried families should not have to wait until the budget of July 8th for the Government to rule out cuts in tax credits GMB Congress told

GMB CONGRESS CALL ON GOVERNMENT TO RULE OUT CUTS TO £141.25 AVERAGE WEEKLY TAX CREDITS FOR 408,700 IN-WORK FAMILIES IN LONDON

download pdf248Kb (pdf) - 07 June 2015

Worried families should not have to wait until the budget of July 8th for the Government to rule out cuts in tax credits GMB Congress told

GMB CONGRESS CALL ON GOVERNMENT TO RULE OUT CUTS TO £124.63 AVERAGE WEEKLY TAX CREDITS FOR 112,500 IN-WORK FAMILIES IN NORTHERN IRELAND

download pdf247Kb (pdf) - 07 June 2015

Worried families should not have to wait until the budget of July 8th for the Government to rule out cuts in tax credits GMB Congress told

GMB CONGRESS CALL ON GOVERNMENT TO RULE OUT CUTS TO £117.60 AVERAGE WEEKLY TAX CREDITS FOR 148,300 IN-WORK FAMILIES IN NORTH EAST

download pdf237Kb (pdf) - 07 June 2015

Worried families should not have to wait until the budget of July 8th for the Government to rule out cuts in tax credits GMB Congress told

GMB CONGRESS CALL ON GOVERNMENT TO RULE OUT CUTS TO £125.02 AVERAGE WEEKLY TAX CREDITS FOR 417,800 IN-WORK FAMILIES IN NORTH WEST

download pdf245Kb (pdf) - 07 June 2015

Worried families should not have to wait until the budget of July 8th for the Government to rule out cuts in tax credits GMB Congress told

GMB CONGRESS CALL ON GOVERNMENT TO RULE OUT CUTS TO £113.46 AVERAGE WEEKLY TAX CREDITS FOR 250,300 IN-WORK FAMILIES IN SCOTLAND

download pdf249Kb (pdf) - 07 June 2015

Worried families should not have to wait until the budget of July 8th for the Government to rule out cuts in tax credits GMB Congress told

GMB CONGRESS CALL ON GOVERNMENT TO RULE OUT CUTS TO £122.90 AVERAGE WEEKLY TAX CREDITS FOR 348,600 IN-WORK FAMILIES IN SOUTH EAST

download pdf243Kb (pdf) - 07 June 2015

Worried families should not have to wait until the budget of July 8th for the Government to rule out cuts in tax credits GMB Congress told

GMB CONGRESS CALL ON GOVERNMENT TO RULE OUT CUTS TO £116.94 AVERAGE WEEKLY TAX CREDITS FOR 259,900 IN-WORK FAMILIES IN SOUTH WEST

download pdf221Kb (pdf) - 07 June 2015

Worried families should not have to wait until the budget of July 8th for the Government to rule out cuts in tax credits GMB Congress told

GMB CONGRESS CALL ON GOVERNMENT TO RULE OUT CUTS TO £118.54 AVERAGE WEEKLY TAX CREDITS FOR 167,400 IN-WORK FAMILIES IN WALES

download pdf244Kb (pdf) - 07 June 2015

Worried families should not have to wait until the budget of July 8th for the Government to rule out cuts in tax credits GMB Congress told

GMB CONGRESS CALL ON GOVERNMENT TO RULE OUT CUTS TO £127.62 AVERAGE WEEKLY TAX CREDITS FOR 319,000 IN-WORK FAMILIES IN WEST MIDLANDS

download pdf238Kb (pdf) - 07 June 2015

Worried families should not have to wait until the budget of July 8th for the Government to rule out cuts in tax credits GMB Congress told

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