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Budget gives with one hand takes away with the other

Reacting to Osborne's first budget of the new Parliament, local MP Mike Kane said: 

“In this budget the Tories are giving with one hand and taking away with the other. Cuts to tax credits will hit over 3 million people including 60% of families in Wythenshawe & Sale East.” 

“If Cameron and Osborne were really serious about reducing welfare spending they would be tackling low pay and high housing costs. Instead we get a sham ‘living wage’ promise. The new rate when it’s introduced in 2020 will be lower than the Living Wage this year.”

 

“Young people in Wythenshawe have been dealt a huge blow with the end of maintenance grants from 2016/17, which will be replaced with loans. Yet again Osborne is unfairly targeting the young when looking for budget savings. For many low and middle income youngsters in Wythenshawe & Sale East this could create another barrier to them going to university.”

 

 

Examples of how working people are losing out in this budget:

 

A lone parent with two children working 16 hours a week at the NMW would gain just over £400 from the move to a 'living wage'. But she would lose twice that - £860 from the changes to tax credits in 2016/17.

 

A couple with one person working full time on average earnings would lose over £2,000 in tax credits from the changes announced today and not benefit from the National Minimum Wage measure.

 

A couple with two children where both work full time at the NMW will gain £1560 from the change to the 'living wage'. But they will lose over £2,200 from changes to tax credits and not benefit from the National Minimum Wage measure.

 

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