FAMILIES and workers on low pay are facing a “tax bombshell” stemming from changes to tax, benefits and tax credits which come into force tomorrow, it was claimed today.
Scottish Labour said families with children will lose an average of £511 a year from the changes announced in last month’s Budget, according to figures from the financial thinktank, the Institute of Fiscal Studies.
The party said more than 73,000 families on “modest and middle incomes” will lose all of their Child Tax Credit and up to 11,000 working couples earning less than £17,000 per year will lose all of their Working Tax Credit – worth up to £3870 per year – if they cannot increase their working hours.
Edinburgh South Labour MP Ian Murray said the number of families losing tax credit from tomorrow is “shocking”.
He claims 5570 families in the Capital will be worse off.