Treasury reveals £15bn annual saving from chancellor George Osborne’s tax credit reforms
The government has leapt to the defence of its plan to slash tax credits, publishing figures that reveal a £15bn annual saving from reforms introduced since 2010.
Chancellor George Osborne is under growing pressure to row back on his plan to slash the threshold at which tax credits start to be withdrawn. Some members of his own party are unhappy with the reforms, while Labour will vote against the changes this week.
But last night chief secretary to the Treasury Greg Hands said: "Labour has opposed every single saving we’ve made in a welfare budget they let spiral completely out of control."
The Treasury cites data showing tax credit spending at £40bn by 2016-17 prior to reforms made since Labour left office. It is now expected to be £25.3bn. Hands said the saving is "the equivalent to £500… for every taxpayer