Employers
are sacking workers to avoid having to administer the Government’s working
families’ tax credit scheme according to research.
A
study by the National Association of Citizens Advice Bureaux (NACAB) revealed
that the initiative, one of the Government’s main weapons for tackling child
poverty, is not working properly.
The
tax credit was introduced in October 1999 to try and give working families with
children a better deal.
But
the study based on 700 case reports from CABs all over the country shows that
the scheme has backfired for some of those it was meant to help most because
employers are not prepared to deal with the associated red tape.
David
Harker, chief executive of the NACAB, said, “It make no sense that the scheme
that sets out to make work pay is making it more difficult for some people to
stay in their jobs.
“Changes
to the scheme now could help ensure working families tax credit delivers on its
promise and that more of those it should be helping can benefit.”
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