George Osborne considering £5bn cuts to child tax credits

Date Posted: 11 June 2015

Allies of George Osborne are studying an Institute for Fiscal Studies idea to return tax credits to 2003/4 levels, plus inflation - saving £5bn.

Changes would cut entitlements for about 3.7 million low-income families by about £1,400 a year, the IFS said.

The IFS has calculated that for the poorest families it would mean a reduction of £845 per child per year.