The Treasury's decision to scrap cuts to tax credits means that families will be affected when the planned changeover to universal credits happens, a think tank has warned.
Cross-party think tank Demos "welcomed" the announcement to scrap the unpopular cuts to tax credits but said large portions of the promised savings to the welfare budget now depend on future universal credit figures.
In a statement, Demos said:
The Chancellor’s welcome decision to shelve plans to cut tax credits will protect working families now, at the expense of the Treasury; but over time, the plan is to move from tax credits (and other benefits) to Universal Credit – entitlements we know, from the Summer Budget, will be subject to cuts.
So it is when families make the transition from one system to another that the real savings will be made.
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