As Labour calls on Tory MPs to vote against George Osborne’s proposals to change tax credits,we explore how they are currently set upTax credits are a mechanism to redistribute income to people on lower wages. There are two types: child tax credits, paid to families with children; and working tax credits, or paid to people in work on lower incomes.
More than 70% of families on tax credits are in work. All the 1.4 million out-of-work families claiming tax credits enjoy children and receive child tax credits only.
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Source: theguardian.com