Bad Friday with a further 90% to follow.
Austerity hits home for hard-pressed families
This week’s Bad Friday raid is a grim reminder that nine-tenths of the Coalition’s austerity cuts have yet to bite
The uncomfortable truth for many people is that they will lose a lot of money.
The £4.7bn George Osborne says he’ll save means £4.7bn less spending power among people who can ill-afford to lose the cash.
Bad Friday: Lowest-paid families set to lose up to £4,500 as in benefits freeze
George Osborne is punishing the poor by freezing child benefit and slashing tax credits – changes that come into force on Friday
Mr Osborne wants to slash the annual welfare bill by £4.7billion before the next election and 7.8 million families are in his line of fire.
For, despite the soaring cost of living, child benefit will not rise. It was frozen for three years from April 2011.
Mr Osborne’s big freeze is also spreading across working tax credits. The basic annual rate is being held at £1,920 and those working more than 30 hours will lose out as the supplement stays at £790.
Couples will have to work 24 instead of 16 hours to get working tax credits.
Changes are also hitting child tax credits which will be denied to one child families that earn at least £26,000 and to two child families on £32,200 or more.
A £4 supplement to help raise toddlers and aid for the low-paid over 50 are being scrapped. Ministers have talked up the benefits of increasing the personal tax threshold to £8,105.
But the TUC calculate that families will gain just £381 over the next year while some will be left about £4,500 worse off by the benefit changes.