Women will bear the brunt of Tory cuts to tax credits, with working single mums set to lose in excess of £1,000 a year.
An analysis by the Resolution Foundation shows that a single parent working full-time could be left £1,500 a year worse off, despite receiving a £700 pay rise from the so-called ‘National Living Wage’.
The analysis also reveals that the £4.5 billion cuts to tax credits will leave 1.5 million married mums around £600 a year out-of-pocket.
The damning figures, published on behalf of the Daily Mirror newspaper, rubbishes claims made by ministers that the Conservative Party stands for working people.
Recent figures published by the Resolution Foundation warned the changes could plunge a further 100,000 working people into poverty.
Labour’s Shadow Work and Pensions Secretary, Owen Smith MP, said the Tories are punishing working people for trying to do “the right thing”.
Owen Smith told the Daily Mirror: “Instead of helping make sure work pays, the Tories are punishing people for doing the right thing.
“They are taking huge amounts from working families, many of whom are already struggling to make ends meet.
“That’s why the country has seen through the Tory spin, they know their attempts to pose as the party for working people is little more than a cruel joke.
“The new research showing that mothers are going to be hardest hit by these tax credit cuts, sadly doesn’t come as a surprise.
“Since this government came to power in 2010 it’s been women who have lost the most as a result of the cuts and the latest round will have a devastating impact on family finances.
“While the combined measures in George Osborne’s miserable 2015 Budget, will push a further 600,000 children in to poverty by 2020.”
In a strong worded warning to the Tories, Owen Smith said that many of the three million people affected will feel “passionate anger, despair and sense of betrayal by the Tories”.
Matthew Whittaker, Chief Economist at the Resolution Foundation said: “Cuts to tax credits next April will leave millions of working families worse off, with women set to face the brunt of these losses.
“Many mums in working families are set to lose in excess of £1,000 a year. And it will be extremely difficult to recover these losses through work, because many will keep just 20p of every extra pound they earn.
“The Chancellor must look to ease the pain of the cuts to in-work support in the upcoming Spending Review.”
A Treasury Spokesperson said taking spending on tax credit back to 2008 levels is both “fair and necessary”.
They added: “Two thirds of the 2.7 million people who directly benefit from the new National Living Wage are women, as are over half of those taken out of tax altogether by increases to the income tax personal allowance by 2017-18.”