Scottish Families will see £700 Million of Cuts

Between 200,000 and 250,000 families in Scotland will be facing almost £700 million of cuts to their tax credits under the new budget plans for the UK Government. Families who have more than two children will no longer receive tax credits for any subsequent children under these fundamental welfare changes.

The income level which people can claim their tax credits is also going to decrease, which means there will be far fewer eligible people to claim the benefits.

Alex Neil, Social Justice Secretary, has encouraged the UK Government to abandon the cuts while the Scottish Secretary David Mundel has said that Holyrood ministers need to begin spelling out their welfare policies.

Mr Neil’s comments have come as analysis by the Scottish Government found that the households with the least money are the ones which will be disproportionately impacted by tax changes and benefits.

“The reality off the budget is that it will push more families into desperate situations and widen the poverty gap”, he said

He also said that the UK Government’s agenda when it comes to austerity has led to unacceptable levels of child poverty and inequality, and a recent report by the Institute of Fiscal Studies found that two thirds of children who live in working households are currently living in poverty.

Mr Neil went on to say that these tax credits are often a lifeline for low-income families, and they rely on them to put food on the table, pay their bills, and heat their homes. This means additional stress and worries for those who are already finding it tough to survive.

Charities have echoed Mr Neil’s outcry against the cuts, and they have warned of the impact they will have on the poorest families in Scotland.