Families worse off under Tories by £1,100 a year on average, says Ed Balls

http://www.theguardian.com/politics/2015/apr/03/tories-ed-balls-labour-vat-tax-credits

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Households are worse off to the tune of £1,100 a year as a result of the rise in VAT and cuts to tax credits, according to Ed Balls.

Balls has released a new poster with the figure of £1,100 superimposed over the black door of the chancellor’s official Downing Street residence. The poster says: “£1,100. The cost of a Tory chancellor.”

The Labour poster is designed to pre-empt the Tories who are expected to mark the beginning of the new financial year with warnings that Labour would increase taxes on ordinary families.

But Balls has highlighted figures from the Institute for Fiscal Studies which show that changes in a series of areas since 2010 have now made households worse off on average by £1,100 a year. The calculations take account of the rise in VAT in January 2011, cuts to tax credits for working families and changes to the personal allowance.

The figures show that a couple who are both working and on average earnings, with two children, will be £1,700 worse off in 2015-16. A lone parent with two children working 25 hours a week on the minimum wage will be £1,800 worse off in 2015-16.

Balls will say during a campaign visit to West Yorkshire: “Families will be £1,100 a year worse off on average because of this Tory chancellor’s choices. George Osborne and David Cameron have raised VAT and cut the tax credits of working people, but given millionaires a huge tax cut. And our new figures today show how families with children have been hit hardest of all.

“Labour’s better plan will make fairer choices, put working people first and save our NHS. We will cut taxes for 24 million working people through a lower 10p starting rate of tax and expand free childcare for working parents to 25 hours a week.”