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<p>The Government is making changes to Child Tax Credit and Universal Credit which
will help put welfare spending on a more sustainable path. The Government wants to
move from a low wage, high tax, high welfare society to a higher wage, lower tax,
lower welfare society. That means more emphasis on support to hardworking families
on low incomes by reducing income tax through increases in the personal allowance
and increasing wages, than on topping up low wages through tax credits.</p><p> </p><p>
</p><p> </p><p>Families with someone working currently on the minimum wage will benefit
from the introduction of the National Living Wage from April 2016 which will be set
at £7.20 per hour. The Government’s ambition is for the National Living Wage to reach
over £9 by 2020. This would equate to a cash rise of £5,200 a year by 2020 for those
who are currently working full time on the National Minimum Wage.</p><p> </p><p> </p><p>
</p><p>These changes will ensure that work will always pay more than a life on benefits,
support will be focused more on those on the very lowest incomes and the system will
be fairer upon those who pay for it, as well as those who benefit from it. Taking
the welfare changes in the Budget together with the record increases in the income
tax personal allowance and the introduction of the new National Living Wage, 8 out
of 10 working households will be better off by 2017/18.</p><p> </p>
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