Tax Credits: Impact of Cuts

Baroness Sherlock Excerpts

Monday 14th September 2015 Lords Chamber

[Lord Ashton of Hyde]

The right reverend Prelate is correct to focus on these statistics and forecasting child poverty is very difficult. The IFS, for example, forecast in 2011 that there would be 2.8 million children in relative poverty and the actual figure was more than half a million less. We have considered the impact of the policy changes on children in poverty carefully in the summer Budget and we will continue to do so.

[Baroness Sherlock (Lab)]

My Lords, just saying something over and over again does not, sadly, make it true. If the Minister is mostly concerned about children in working families, will he look please at the independent academic research for the Resolution Foundation, which found that, as a result of the Budget changes, most working families would be net losers? They may gain some income, but they are going to be worse off as a result of cuts in tax credits. How does that help tackle child poverty?

[Lord Ashton of Hyde]

My Lords, I do not agree with that. Eight out of 10 working families with children will be better off when you take into account the tax credit changes, the national living wage and the increase in the personal allowance.