Kate Andrews, Head of Communications at the Adam Smith Institute, took part in a debate piece with Ken Clarke for Prospect magazine. In it, they both agree the welfare system is in need of reform , but should the tax credit cuts be rethought too? Kate Argues YES:
It’s easy to understand why people might be conflicted about tax credits. On the one hand, tax credits are a direct handout from the state, often given to those only working part-time. On the other, they incentivise work and benefit those at the bottom on relatively low pay.
Combine this internal conflict with the UK’s welfare structure as a whole, and it would seem necessary for the government to implement some kind of reform to the various systems, tax credits included.
But the Chancellor is only interested in cuts, not reform.