There is a big debate in the UK after David Cameron announced he would reduce tax credits (benefits) and introduce a National Living Wage (higher wages). There are two types of tax credits in the UK: Child Tax Credit and Working Tax Credit. The less generous handouts should save government £4.5bn a year.
Under government proposals, the income threshold for Working Tax Credits - £6,420 - will be cut to £3,850 a year from April.
In other words, as soon as someone earns £3,850, they will see their payments reduced. The income threshold for those only claiming CTCs will be cut from £16,105 to £12,125
The Tories also claim that families will be better off but the Independent Institute for Fiscal Studies (IFS) says that millions of working people will lose an average of £1,000 a year.
However, The House of Lords voted to delay these cuts by 289 : 272 votes.
Should there be cuts to welfare in the UK?
http://www.bbc.co.uk/news/uk-politics-34631156
https://www.youtube.com/watch?v=tYD8sZOGIKs
https://www.youtube.com/watch?v=qgvvquJg_LU