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Tory MP warns party over planned tax credit cuts

Pressure has mounted on Chancellor George Osborne to give way on plans to cut tax credits for low-paid workers, as a succession of Conservative MPs stood up in Parliament on Tuesday to voice their misgivings.

New Tory MP Heidi Allen used her maiden speech in the House of Commons to warn that the changes go "too hard and too fast", and that it was "real people, working people" who would be affected.

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Unison claims three million families could lose out over tax credits cuts

General secretary Dave Prentis Credit: PA

More than three million households could see their incomes fall as a result of the cuts to tax credits, according to Unison.

General secretary Dave Prentis called for ministers to reveal the number of households which will lose out from the controversial changes.

Ministers have said that despite the £4.4 billion tax credit cut, 80% of households will be better off by 2017-18 as a result of the tax and benefit changes introduced by Mr Osborne, including the introduction of the National Living Wage.

The union said if four-fifths of the 17.4 million working households will be better off by 2017/18, one fifth - 3.5 million - will suffer.

That figure would include the "vast majority" of the 3.3 million low to middle-income working households on tax credits, 2.7 million of which have children, Unison claimed.

Tax credits are not a luxury that struggling working parents can do without. They are quite simply the difference between families keeping their heads above water and going under.

Some working households will be down as much as £50 per week, a loss that will play havoc with their finances.

The Government's cruel tax credits cuts will snatch billions from the pockets of mums and dads who are going out to work to give their children the best start in life they can.

– Mr Prentis

The Treasury released figures on Monday saying the changes to tax credits has saved £15 billion.

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