Resolution Foundation and Institute for Fiscal Studies said slowing impact of the cuts would still save £4.4bn in long runThe government could easily slow the pace of tax-credit cuts and still meet its deficit target,tax and welfare experts told MPs on Monday, as research showed that two-thirds of the recipients of working tax credits would be worse off by 2020. Welfare experts also warned that the structure of its reforms would slay Universal Credit’s original purpose of increased work incentives.
During a two-hour evidence session, and the Institute for Fiscal Studies (IFS) and the Resolution Foundation set out the impact of the tax credit cuts,and the best way to mitigate the changes. Their evidence is likely to be critical as the chancellor has promised to listen to those suggesting ways to adjust the tax credits reforms he set out in the summer, aimed at trimming £4.4bn from the welfare bill.
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Source: theguardian.com