Owen Smith MP, Labour’s Shadow Work and Pensions Secretary, responding to changes to Tax Credits and Universal Credit announced in the Spending Review, said:

“I welcome the fact that the Chancellor has bowed to Labour pressure and reversed the immediate unfair cut to Tax Credits.  However, this is not the full and fair reversal we demanded, as he is still taking £1 billion from working families next year and over £3 billion by the end of the Parliament, as Tax Credits are replaced by Universal Credit.

“As a result, a single parent of two children working full time on the Minimum Wage on Universal Credit will lose £2,400 next year due to the Chancellor’s cuts.

“In short, this is a smoke and mirrors Spending Review from George Osborne, leaving working people worse off and failing to address the big challenges facing the country.”