25,000 families hit by tax cap

MORE than 25,000 families in Edinburgh will be hit by Chancellor George Osborne’s cap on working tax credit, Labour has claimed.

The party has labelled the cap a “strivers’ tax” because the decision to limit benefit increases to a below-inflation one per cent will affect people in low-paid employment as well as those out of work.

Edinburgh East Labour MP Sheila Gilmore, who is a member of the Commons work and pensions select committee, said: “Working families in Edinburgh will be amazed that George Osborne is asking them to pick up the tab for his failure at the same time as he gives a tax cut to millionaires.”

A breakdown of the figures shows Edinburgh North and Leith has the most people affected at 5800, while Edinburgh South West has 5500, Edinburgh East 5100, Edinburgh West 4700 and Edinburgh South 3900.