Poorest regions 'will suffer most from tax credit cuts'

The poorest parts of the country will suffer most from the Government's tax credit cuts, according to a new study.

Research by the TUC showed that the biggest impact will be in Northern Ireland, where the average loss to claimants will be £1,480.

The region has the lowest average income per head of anywhere in the country so will be disproportionately hit, said the union organisation.%VIRTUAL-ArticleSidebar-tax%

Average losses in London will be £1,110, around £1,410 in the North East, and a similar amount in Yorkshire and the Humber.

The TUC said more than £4.5 billion will be cut from workers who receive tax credits as a result of the planned cuts.

Officials warned that regional pay inequalities will widen.

TUC general secretary Frances O'Grady said: "This research makes clear that as well as making families suffer, the tax credit cuts will make regional inequalities worse. The households who will lose the most are those already in low-income areas.

"Instead of cuts that target the UK's lowest-paid communities, the Government should channel more support towards them.

"The Prime Minister and the Chancellor seem to be the last people in Britain who still think the tax credit cuts are a good idea. They don't seem to understand that people in work deserve a decent income. These cuts should be ditched altogether."

The average losses are calculated for a year from next April when the cuts are due to come into force and range from £1,110 in London, around £1,200 in the South West and South East, around £1,300 in the Midlands, just under £1,400 in Wales, Scotland and the North West to £1,480 in Northern Ireland.