Lord Carey criticises government's tax credit cuts

Former Archbishop of Canterbury George Carey has attacked the government's plans to cut tax credits, saying hard-working families will be hit.

Lord Carey, who backed the benefit cap when Anglican bishops opposed it, urged the government to rethink the cuts in a statement to the Sun and the Mirror.

Another former Archbishop, Rowan Williams, has also signalled his opposition to the move.

But ministers say it is part of wider plans to raise pay and encourage work.

The government has so far resisted calls to alter its plans.

Under the government's plans, the earnings level above which tax credits are withdrawn will be lowered from £6,420 to £3,850, and the rate at which the benefit is lost as pay rises will be sped up. The changes are due to come into effect at the end of the year.

Ministers argue the impact of the cuts will be mitigated by the new National Living Wage and higher tax thresholds.

But Labour says three million families face losing an average of £1,000 a year.

In his statement, Lord Carey wrote: "I urge the government to reconsider these particular cuts to working tax credits that will hit many hard-working families very hard indeed."

He told the BBC that while he had long been a supporter of the government's policies, cuts should not come at the expense of the most vulnerable.

There was a chance now, he said, to show the reality of compassionate Conservatism.

Lord Williams, meanwhile, told the Sun: "There should be no debate about the aim of getting more people into employment. But it won't do to organise the system so that employment brings no advantages and no proper security for working people and their children.

"I don't think this is a party political issue. It ought to be agreed common sense and compassion."

Chancellor George Osborne restated his commitment to cutting tax credits in the Sunday Telegraph.

He wrote, external: "It's simply not credible to impose higher wages and leave tax credits unreformed, condemning taxpayers to ever-higher welfare bills."

The former Conservative chancellor Ken Clarke, speaking to the BBC, urged Mr Osborne not to change his plans.

But BBC political correspondent Ross Hawkins said some Conservatives privately have deep concerns about the cuts.