By David Hanson MP / Latest News / 0 Comments

Hanson and Usdaw Shine Light on Hidden Cuts

Delyn MP David Hanson is backing a campaign launched by the shopworkers union Usdaw to shine a light on the Tory-led Coalition’s hidden cuts to family budgets.


With all eyes on this week’s Budget announcement, David joined Usdaw members and their families at an event in Parliament to highlight the tax and benefit changes that have already been imposed by the Coalition and will start hitting families from April.


Usdaw says changes already announced, such as the reduction in Childcare Tax Credit and the freezing of Child Benefit will leave many hard working families hundreds of pounds worse off at a time when family budgets are already being squeezed by rising prices and the increase in VAT.


Usdaw member Tania Lambert, who has an 11 year old daughter Emma said:


“I’m worried about the hidden cuts – the changes to Tax Credits, the freeze in Child Benefit and the increase in VAT.  As a single parent I rely on in-work benefits to make ends meet – they’re a real necessity and they mean it makes financial sense for me to work but with all the cuts in support for working parents I’m not so sure anymore. Like hundreds of thousands of working parents, I’m really beginning to feel the squeeze.”



David Hanson said:


“The changes already announced by the Tory-led Government represent the biggest shake-up of tax and benefits for over fifty years but unfortunately many people simply don’t understand or realise the massive impact they are going to have on their family budgets. They are the government’s hidden cuts and I’m pleased to support Usdaw’s campaign to alert its members and families to them and to help low income families claim what they are entitled too.”


“There is a real squeeze on family incomes at the moment and if the government refuses to change course, making ends meet is going to get even harder. Hearing the stories of hardworking Usdaw members today really brings home to you the hollowness of the government’s claim that they will protect the most vulnerable in society and that we are ‘all in this together’. “


John Hannett, Usdaw General Secretary added:


“Many of our members juggle paid work with bringing up children or other caring responsibilities and rely on in-work benefits to make ends meet. Many are worried about money and rising prices so it is vital we give them advice and support to understand what these changes mean for them and their families.”


“With the cuts many members face, it is vital Usdaw continues to campaign to make sure low income families claim the benefits and Tax Credits they are entitled to and that we challenge the government to safeguard Child Benefit and pay benefits and Tax Credits at an adequate level.”




Notes for Editors:


Please find attached photograph of David with Tania and Emma Lambert.


  1. The table below summarises some of the hidden cuts taking place in April:


Date Change Impact
1 April Sure Start Maternity Grant for second child and baby abolished £500 less for lower income families having second or subsequent baby
5 April


Baby element of Child Tax Credits abolished £545 less for families with babies under one in April 2011
Child Benefit frozen £50 to £120 less for all families depending on the number of children
Working Tax Credit frozen £88 less for people working under 30 hours and £124 less for people working over 30 hours
Childcare Tax Credit reduced from 80% to 70% Up to £1,560 less for families claiming Childcare Tax Credit
Personal tax allowance increased by £1,000 £160 more for all basic rate taxpayers
NIC threshold & NIC rate increased Employees on less than £20,000 gain up to £120, others lose out by up to £200
Benefits & tax credits to rise by CPI, rather than RPI Households lose out by around 2% of all benefits – up to £100
Health in Pregnancy Grant abolished £190 less to families with a baby due after mid April 2011
Child Tax Credit increased by £180 but tax credit claw-back (taper) increased by 2% to 41% Households on less than £20,000 will be net gainers of up to £180 but those on more will be net losers of up to £150


  1. For more information on Usdaw’s campaign, including a leaflet detailing government changes


  1. Usdaw (the Union of Shop, Distributive and Allied Workers) is the UK’s fourth biggest trade union, with over 395,000 members. Usdaw is the country’s fastest growing trade union; membership has increased by more than 15% in the last four years and by over a quarter in the last decade. Most Usdaw members work in the retail sector, but the union also has many members in transport, distribution, food manufacturing, chemicals and other trades.