Reports say new living wage will leave millions of us worse off!

Today a report is The Mirror has claimed that replacing tax credits with the living wage will leave 8.4 million of us worse off.

The Government announced in July that they would  be introducing a new higher minimum wage of £7.20 which sounds like a positive step, however they are also going to be taking tax credits away from people at the same time.

The Mirror says: ‘Tax credits are benefits for working families on low incomes. The system is confusing, but basically Government cuts mean less money for large families and anyone earning more than £3,850 a year. The Government argues the Living Wage will make up for the tax credit cuts, but independent experts are not convinced.’

It is thought that 8.4 million households with one paid worker will lose an average £550 a year, even after the boost from the living wage.

The article goes on to say that Female workers will be more likely to benefit the most from the living wage because they are most likely to be in low-paid jobs to begin with.

Out of work Brits will lose the most because they will experience benefit cuts while not seeing any of the higher wages (because they’re not taking home a wage to begin with. Families with children are also set to see a big change as most benefits relate to having kids.

CLICK HERE to find out how Universal Credit will affect you.

CLICK HERE to read the full article on The Mirror.