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Tory conference: Tax credit cuts to go ahead, says David Cameron Tory conference: Tax credit cuts to go ahead, says David Cameron
(35 minutes later)
Cuts to in-work tax credits will go ahead, Prime Minister David Cameron has said, despite calls from within his own party to think again.Cuts to in-work tax credits will go ahead, Prime Minister David Cameron has said, despite calls from within his own party to think again.
The PM told the BBC's Andrew Marr show the cuts were part of wider reforms that would leave people better off.The PM told the BBC's Andrew Marr show the cuts were part of wider reforms that would leave people better off.
"The changes we have put forward are right and they come with higher pay and lower taxes," he argued."The changes we have put forward are right and they come with higher pay and lower taxes," he argued.
But critics, including ex-Tory minister David Willetts, say millions of working families will be left out of pocket.But critics, including ex-Tory minister David Willetts, say millions of working families will be left out of pocket.
In other highlights from his Marr interview:
The TUC is planning what it claims will be a 70,000 strong march against austerity in Manchester later, as the Conservatives gather in the city for their annual conference.
'Difficult decisions'
More than three million low paid workers will be told how much they will lose from the changes to tax credits just before Christmas.
Former Conservative minister David Willetts has urged Mr Cameron and Chancellor George Osborne to look again at the changes - a view supported by Labour MP Frank Field and Conservative MP Boris Johnson.
The Institute for Fiscal Studies has warned it is "arithmetically impossible" for nobody to lose out under the changes, while another think tank, The Resolution Foundation, said more than a million households will lose an average of £1,350 a year.
But speaking to The Andrew Marr Show, Mr Cameron said the introduction of the National Living Wage and continued increases to the personal tax allowance would protect the poorest.
He said: "We have had the vote in Parliament on tax credits and I think people respect this argument that the National Living Wage - a 50p increase next year, so a £20-a-week pay rise, rising to £9 by the end of this Parliament - that is a very significant change that really helps to make work pay rather than a tax credit system that recycles money back to people."
He said the UK was moving to a "better system" where people pay less in tax and keep more of the money they earn but "difficult decisions" had to be made to tackle the deficit and protect the NHS and education.
Asked about the possibility a further review ahead of next month's Autumn Statement, Mr Cameron said: "No, we think the changes we have put forward are right and they come with higher pay and lower taxes."