In George Osborne's Comprehensive Spending Review last week, there were a number of complex changes to Tax Credits. Tax Credits are paid by the government through the payroll, to workers on low incomes.Under the new qualifying conditions, from April 2012, couple households with children will need to be engaged in 24 hours or more hours of work per week (compared to the current 16) and one of the couple will need to work at least 18 of the 24 hours. As claimants of Tax Credits with children (single parent or couple) can also receive 80% of their child care costs (to be reduced to 70% in April 2011) the length of working hours of employees in fractional or part time posts may mean that many Council employees are disqualified from access to these benefits. That is why Councillor Richard McCready and I are calling on the Council's Policy and Resources Committee to adopt our resolution to review the position of part time post holders working for the council who may be affected in these changes. Their resolution also call for working hours to be considered as the Council restructures in the light of the Con-Dem cuts.
Councillor Laurie Bidwell said:
A significant number of Council staff job share or undertake part time work. It will make a significant difference to couples with children if their working hours prevent them from continuing to claim Tax Credits and the related child care costs. While this change is more than a year ahead, it is not too soon for the Council to investigate the impact of these changes on its own staff and what maybe done to help staff retain their entitlement to Tax Credits. I think this is the least that the Council can do as a major employer. Maximising the income of staff from wages and benefits is not only good for our staff and their families abut also good for the economy of the city.
Councillor Richard McCready said,
The Council has a duty to ensure that employees are rewarded for their efforts and that parents are able to work to support their families. I am very concerned about these changes to tax credits. I also think that the council should be considering moving towards providing a Living Wage, set at around £7 an hour.