Miliband: Cameron plans to slash £3.8bn from tax credits

Ed Miliband speaking this morning Credit: Pool

Millions of families' budgets are at risk if the Conservatives win the general election, Labour leader Ed Miliband has warned.

This morning the party released analysis suggesting the Tories are planning to slash £3.8 billion from tax credits.

Speaking at a conference in London, the party said that this would mean families with one child losing tax credits when their incomes hit £23,000 a year - leaving them more than £1,600 a year worse off.

Those with two children could lose credits after earning £29,000, at a cost of £2,000 a year, and families earning £12,000 a year will lose at least £550, Labour said.

The Conservative party's 'secret plan', according to Labour:

  • Cut £3.8 billion from the Tax Credits working families rely on

  • Include Child Benefit in Universal Credit, meaning a cut of more than £1,100 a year for 4.3 million families

  • Double the pace of cuts next year

Mr Miliband said: "Today I am here to reveal the truth: if the Tories get back in on May 8, your family budget is at risk. Another five years of Tory government will mean a plan to double the pace of cuts next year, a plan that puts your family budget, your NHS and our country's future at risk."

Labour's shadow work and pensions secretary Rachel Reeves added, "These plans might be secret, but they are the Tories' plan nonetheless."

She challenged the Conservative party to deny Labour's claims.

"They cut child benefits and tax credits in the last parliament and they'll do exactly the same if they're given the opportunity in this parliament as well.

"So we put this challenge to David Cameron and George Osborne today - if these aren't your plans, what are your plans for family finances and social security spending?"