Working tax credits: why they face the chop

The Conservative election win means working tax credits are likely to be replaced by 2017

Tax Credit
(Image credit: Getty)

Working tax credits, a state benefit made to low-income workers, were introduced by the Labour government in 2003 – and are now likely to be phased out.

They are one of two types of tax credits – the other is the child tax credit. Working tax credits top up the earnings of lower paid workers and workers with a disability, whereas child tax credits are paid to all, regardless of whether the claimant is in work.

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