Last night's announcement of the Autumn Statement heralded welcome news for a vast number of families around the UK this week.
Speaking in the House of Commons yesterday, Chancellor George Osbourne executed a U-turn on an intended tax credit cut – a plan which would have resulted in a loss of almost £1,000 for approximately three millions families in the U.K.
In accordance with his Spending Review, Mr. Osbourne revealed that the controversial cuts, which were rejected by the House of Lords earlier this month, had been scrapped as a result of concerns voiced regarding the proposed plan.
"I've had representations that these changes to tax credits should be phased in. I've listened to the concerns. I hear and understand them," he asserted while addressing the House.
Commenting on the unprecedented U-turn, Mr. Osbourne asserted that he had taken the concerns on board and decided that “the simplest thing to do is not to phase these changes in but to avoid them altogether.”
Using an unexpected £27 billion fiscal windfall, the Chancellor says he is now in a position to scrap the plan and reduce the number of spending cuts in other areas.
Further to this, 30 hours of free childcare for three and four-year-olds in England was announced yesterday by the Chancellor, but only to parents working more than 16 hours and who each earn £100,000 or less. Many parents already get a free 15 hours of childcare for three and four-year-olds.
The news was met by a volley of cheers in the House of Commons last night.
