Many parents 'better off on the dole' after tax credit changes - Telegraph.co.uk

The Treasury is hoping to save £380 million per year through the move, but Labour is calling for the move to be reconsidered in this spring's annual Budget announcement.

Sarah Jackson, director of Working Families, a charity for parents, said the move was "cruel at a time when the jobs and extra hours just aren't there".

"This is disincentivising people to work, which is exactly the opposite of what the Government said it wanted to do," she said. "Our real fear is that it's going to push a lot of people back into the benefits system. Some people haven't even realized they are going to lose their benefits. It's a particularly mean-spirited move."

Part-time workers on average do around 15.5 hours per week, in comparison to 37 hours for full-time workers.

Women are much more likely to be part-time workers than men, with 13 per cent of female employees working less than 16 hours per week and almost half working less than 30 hours per week.

In the last Budget, George Osborne, the Chancellor, said he would save around £250 million per year by freezing working tax credit.

That move was designed to help the Chancellor to pay for lower petrol taxes and measures to boost businesses.