Tax credits aren't working

 

Gordon Brown and his incredible tax credits are a regular fixture for gloating during his budget speeches – though I’m not sure why. I have long expressed my dislike for the over complex scheme. Well, a report out today by the former Labour minister Frank Field has plunged the sword right in. His findings show that the scheme actually discriminates against families. For example, a single mother working 16 hours a week, after tax credits, gains a total income of £487 a week, while a two-parent family on the minimum wage has to work 116 hours for the same income. So how does this scheme actually help low income working families and fight poverty, Gordon? In fact, if Brown is to deliver his promise to eradicate child poverty he is going to have to find an extra £4bn from somewhere - unlikely given the Corporate Spending Review in the late summer / autumn. Another policy where I'm sure the intentions were right, but the result has been a complete failure and waste of money.