The economy could lose £3.5 billion a year if the Government presses ahead with controversial cuts to tax credits, a union has claimed.
Unison said almost three million working families with children could lose out from any cuts announced in today’s Spending Review.
The average loss per household affected would be £1,300, said Unison, adding that families were “nervously waiting” for any news today despite the Lords voting for the cuts to be put on hold.
Unison general secretary Dave Prentis said: “The Lords might have forced a reluctant Chancellor to think again, but we’re not out of the woods yet. Tax credit cuts have not gone away, far from it. Even if the Chancellor announces a pause to their introduction today, it will only be delaying untold financial misery for working families.
“Tax credits are not a luxury, but are quite simply a lifeline for hardworking families. Taking away a large proportion of the tax credits they rely upon will turn their already precarious finances upside down.
“Nearly three million low-income families across the UK will be hoping that the Chancellor has good news for them today. They will want to hear that he’s decided against grabbing billions back in tax credits from working parents who are trying to provide a decent start in life for their children.”