Welfare Reform and Work Bill Committee

Written evidence submitted by Emma Hauxwell (WRW 59)

To whom it may concern,

I would like to take this chance to express my personal opinion on the proposed changes to the tax credit cuts in April 2016 and the changes to tenants living in social housing due April 2017

As a family of 5, myself and my husband both work full time to provide for our 3 children, 1 of whom is disabled , the tax credits we receive are made up mainly of the disability element and severely disabled element, we rely heavily on these in order to make our children’s lives especially our disabled sons life better.

• Reducing the working tax threshold so dramatically and so quickly from £6420 to £3850 and increasing the taper from 41p to 48p means my family will lose approximately £3120 over the year. – Why can’t this be introduced slowly over say 2-3 years?

I understand that the nlw for over 25s is going up to £7.20, for myself this means an extra £624 a year (my husband is already over nmw ) and then the tax free allowance is also going up meaning we will be better of £400 between us per year.

In total this means an extra £1024, however overall this means a loss of £2096. Whilst this may seem like a pittance to some folk, it is a lot for us, and Im worried what it will mean for my family. Obviously every penny counts when you get some mps claiming for journeys for as little as 9p ! Why target us working folk, us that work all hours to provide for our children.

• The lowering of the income for the pay to stay policy is atrocious, currently a "high earner " not living in London is classed as someone earning over £60,000, yet from April 2017, this is being cut in half and changed to £30,000 how can this be ? When it is only £3500 over the national average salary.

How can it be that a family earning £33000 are classed as a low income and be able to claim tax credits to "top up their income" then the same family being classed as high earners and being affected by the pay to stay., this does not make sense at all.

My proposed amendments are as follows -

• Yes bring in the reducing of tax credits threshold and increasing of taper amounts, BUT do it over a period of 2-3 years, so people can get used to it and make cutbacks as necessary.

• Please consider what a high income really is, £30000 for a family of 5 does not stretch as far as £30000 for a family of 2.

I agree with the benefits cap being reduced because "making work pay" is apparently is what it is all about!

Please consider my proposals and support those of us who do work.

October 2015

Prepared 14th October 2015