In the last couple of days the Labour Party briefly paid for a misleading advert on the popular MumsNet site about our plans for tax credits. I think it’s important that people know the truth.
They say our policy will take away tax credits from families with incomes of £31,000 or more. That is a lie, and it is irresponsible for Labour to be scaremongering in this way and worrying families needlessly.
So I want to be very clear. We think that tax credits provide a vital boost for families across the country. We support tax credits and we will keep them.
But Labour’s irresponsibility now means that we have to look again at what we can afford as a country. All the main parties agree that public spending will have to be cut in future years. That means making tough choices.
Our priority is to find a way to get spending under control that is fair and protects the poorest. Tax credits are designed to help families on low incomes, but we are now paying them to families earning over £50,000. We don’t think that is affordable anymore, so we have said that under a Conservative Government these families would stop receiving tax credits. No families with a combined household income of £40,000 or less will be affected by our policy.
We are all in this together – we need to pay off our debts so our children don’t have to. We are being honest about the challenges we face and how we will deal with them. It’s time Labour did the same.