George Osborne has announced a new wave of cuts to tax credits, to be implemented in April 2016.
The income threshold for Working Tax Credits, currently £6,420, will be cut to £3,850 per year. Those earning over £3,850 will see their payments considerably reduced.
The income threshold for those claiming Child Tax Credits will go down from £16,105 to £12,125. Tax credits will also taper at a much faster rate. For every £1 over the income threshold individuals earn, they will lose 48p of their tax credits, up from 41p.