After all the commotion about various policies in last month’s Budget, the focus this morning has shifted to measures announced back in 2010. Why? Because they take effect tomorrow. So Ed Balls is taking the opportunity to hit the government hard on what he calls its ‘tax credit bombshell’ for those on middle and low incomes.
Labour are pointing to figures from the IFS, which show that changes to child and working tax credits will outweigh the rise in the £630 personal allowance. In their Budget briefing a fortnight ago, the IFS calculated that the net effect of all the changes coming into force tomorrow would be an average loss of £511 for households with children. Households with no children will also lose out, but to a lesser extent, with an average £156 loss.
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