UKIP would phase in cuts to tax credits.
Making Tax Credits fair is at the heart of UKIP’s position,
says Mark Reckless, the UKIP economics spokesman. He said, “It is right to cut
subsidies for employers who pay low wages. UKIP therefore supports plans to
introduce a National Living Wage, rising to at least £9 by 2020, while cutting
tax credits.
“We also welcome the government’s adoption of our policy to lift people
earning minimum wage out of tax by raising the annual personal allowance towards
£13,000.
“The problem is that George Osborne has got implementation of the policy
wrong”.
The National Living Wage will rise to £7.20 in April 2016, and then
gradually in annual steps to at least £9 by 2020. At the same time it is
envisaged that the personal allowance will keep rising. However, the Chancellor
says he wants to cut people’s tax credits largely in one go in April 2016. That
is contradictory, given that he claims increases in the personal allowance and
National Living Wage are meant to offset cuts in tax credits. UKIP therefore
proposes to phase in the main cut to tax credits.
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