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The Government is making changes to Tax Credits and Universal Credit which will help put welfare spending on a more sustainable path. The emphasis is on supporting hardworking families on low incomes by reducing income tax through increases in the personal allowance and increasing wages, rather than on topping up low wages through tax credits.<\/p>
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HMT has published a distributional analysis of the impact of the Summer Budget 2015 which includes the effect of tax credit and other welfare measures on households. This information can be found here:<\/p>
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