Call for Action to Protect Council Employees Caught by Changes to Tax Credits

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.

There Is a Better Way Demonstration Edinburgh

Earlier today, I attended the There is a Better Way march and rally in Edinburgh to protest at public sector cuts imposed by the Conservative-Liberal Democrat Government. Organised by the Scottish Trades Union Congress (STUC) the protest attracted more than 20,000 demonstrators representing trades unionists, churches, voluntary organisations, pensioners and political parties who gathered in front of the Ross Bandstand in Princes Street Gardens.

Labour Leader, Iain Gray MSP, who attended the event, said:
"The turnout at this march shows that the people of Scotland do believe there is a better way. The coalition cuts are too deep and too fast, putting 100,000 jobs at risk."

George Samson, of the Dundee Pensioners Forum, said:
"We're here to defend public services. Pensioners depend on these services, and these cuts that are forthcoming are going to affect us adversely."

Before the march, STUC general secretary Grahame Smith said:
"We launched this campaign to dispel the myth that there is no economic alternative to these cuts. There is an alternative. Get people back to work, get the economy growing again, and the public finances will largely take care of themselves. We also launched this campaign to expose the lie that it is those with the broadest shoulders that will bear the brunt of the cuts."