More misery for working families as Autumn Statement costs them more than £320

Date: 29 November 2011

The shopworkers' Union Usdaw has slammed George Osborne's decision to abandon the increase in Child Tax Credit and to freeze all the major elements of Working Tax Credit.

Usdaw says the Chancellor's decision, announced in today's Autumn Statement, will cost working families more than £320 a year and do nothing to support growth or jobs.

The freeze in the couple and lone parent element of Working Tax Credit will cost low and middle income families over £100 in 2012. Added to the loss of the promised £110 extra Child Tax Credit, the Autumn Statement will cost families with 2 children over £320.

With the freeze in other elements of Working Tax Credit and Child Benefit already having taken £450 out of families' pockets, and with high inflation eating deep into every household budget, the further reduction in support will put even more pressure on hard-pressed working families.

Responding to the statement, John Hannett, Usdaw General Secretary said:

"George Osborne had an opportunity to help hard-pressed families and at the same time boost the economy by easing the pressure on household budgets. Not only has he failed to do this, he has heaped more misery on low and middle-income families by cutting the tax credits they rely on while at the same time reducing Corporation Tax for large businesses."

"The retail industry is deeply affected by the reduction in household incomes. Our members are feeling the squeeze at work, where hours and overtime opportunities are being reduced. Now their tax credits have been hit yet again, causing untold misery to families throughout the country who are struggling to make ends meet."

"Today's cuts come on top of the huge reductions in Working Tax Credit and Child Benefit that have already cost working families £450. Over 200,000 couples with children are also being told they have to find extra working hours or lose all of their tax credits. If they can't find those extra hours they'll lose £4,000, plunging them and their children into absolute poverty."

Notes for Editors:

1. Usdaw (the Union of Shop, Distributive and Allied Workers) is the UK's fourth biggest and fastest growing trade union with over 410,000 members. Membership has increased by more than 17% in the last five years and by nearly a third in the last decade. Most Usdaw members work in the retail sector, but the union also has many members in transport, distribution, food manufacturing, chemicals and other trades.