Rachel Reeves Shadow Chief Secretary to the Treasury
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Shadow chief secretary to the Treasury Rachel Reeves: 'This is the wrong policy at the wrong time for thousands of families'

Low income families with parents in part-time work could lose nearly £4,000 per year because of a change in tax credits, the Labour Party says.

Families can currently qualify for Working Tax Credit if they do at least 16 hours per week.

Up to 200,000 families could be hit from April when the threshold is raised to 24 hours per week, the official data highlighted by Labour shows.

In a speech to shopworkers' union Usdaw on Saturday, shadow chief secretary to the Treasury Rachel Reeves will describe the party's findings as a "tax credits bombshell".

Ahead of that she told the BBC it had taken Labour some time to go through the figures and talk to people who would be affected by the changes.

  • 11 Feb 2012