Early on in his combined autumn statement and spending review, Chancellor George Osborne has announced that improvements in the public finances mean that controversial plans to cut tax credits have been abandoned
He confirmed that the tax credit taper rate and threshold remain unchanged and the disregard will be £2,500. However, the government will stop paying housing credit to anyone who has left the country for more than a month.
Osborne said that as tax credits are due to be phased out anyway with the introduction of Universal Credit, he has decided there is no need to undertake the planned reductions.
