Brent has one of the highest numbers of residents claiming tax credits in London
PUBLISHED: 11:37 27 October 2015 | UPDATED: 11:37 27 October 2015
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Brent has one of the highest numbers of residents in receipt of tax credits and earning below the London Living Wage in the city, a report claims.
The revelation in the fifth London’s Poverty Profile comes after the House of Lords blocked plans by the government to cut the income threshold for receiving working tax credits and child tax credit.
Critics claim the tax credit proposals, which would have been introduced next April, would result in the poorest families being worse of by £1,300 a year.
The government argued the shortfall would be plugged when the Living Wage becomes compulsory next year.
In London it is currently £9.15 per hour.
Last night the Lords halted the plans until ministers come forward with “full transitional protection” for those who will be affected for at least three years.
The London’s Poverty Profile was commissioned by the independent charitable foundation Trust for London and produced by independent think tank, New Policy Institute.
It investigated how unemployment, wages, quality of education, benefit changes and the availability of affordable housing has affected people living in the city.
Mubin Haq, director of policy and grants at Trust for London, said: “Whilst the national living wage is welcome, it falls well short of what is needed to live on and the proposed 2020 rate is already below the London Living Wage of £9.15 per hour.
“With the Mayoral Election next year, there is a great opportunity to make London fairer.”
Dawn Butler, the Labour MP for Brent Central, added: “It is outrageous that this government plan to take away the vital support which tax credits provide to 13,600 households of hardworking Brent residents.”