My staff turned down pay rises because they would lose out, Suffolk MP claims
- Credit: Gregg Brown
A Suffolk MP and former housing entrepreneur has claimed staff would turn down a pay rises because they would lose their tax credits.
James Cartlidge, a new Conservative MP, told the House of Commons his constituents in South Suffolk would support the reform of tax credits because it currently created a “benefits trap” and it was “holding back social mobility”.
“In my experience as a small business owner I was absolutely shocked to find that members of staff would decline pay rises that we offered them because they would lose so much in tax credits in this absurd system,” he told MPs.
Mr Cartlidge founded the property portal, mortgage broker and home show business Share to Buy Ltd in 2004, but resigned as a paid director when he was elected in May.
Welfare secretary Iain Duncan-Smith said that the roll out of Universal Credit, which is replacing most benefits and tax credits with a single benefit, would make it easier for people to find work and take on different hours.
You may also want to watch:
“At the moment under tax credits you are often penalised for making a decision to move on in the hours because you lose far too much of your earnings. That reform is underway and it will change lives,” Mr Duncan-Smith said.
- 1 How Suffolk voted in the county council elections 2021
- 2 First views of £1.5m new seafront cafe as hoardings removed
- 3 Driver convicted of killing friend in A12 crash
- 4 'Complete shock' - Neighbours stunned after cannabis farm uncovered
- 5 When Ipswich boss Cook will inform players of his contract decisions
- 6 Ed Sheeran to be Ipswich Town shirt sponsor for 2021/22
- 7 'It could have been a lot worse' - Thatched home owner thanks crews after fire
- 8 Teaching assistant wins unfair dismissal claim
- 9 Village pub given go-ahead to expand dining area
- 10 Police identify elderly man after incident involving young girl in village