PM rubbishes figures on families

Prime Minister David Cameron has rubbished suggestions that families with children will be worse off thanks to his Government.

Independent think-tank the Institute for Fiscal Studies has published a report saying parents stand to lose £511 a year on average under tax and benefit changes coming into force from Friday.

Prime Minister David Cameron chats
with Rubbertoe Props co-owner Nick Robatto at the Business
Service Centre in Barry, South Wales

The new system has prompted fierce criticism from shadow chancellor Ed Balls - who described it as a "tax credits bombshell" for a million households in the UK.

But the premier, who was on a campaign visit to Barry in South Wales, said he "did not accept the figures".

He added: "If you are looking at what we are doing with the personal allowance we are actually raising it in this tax year, so 24 million taxpayers will benefit to the tune of £6.50 per week.

"We are actually taking difficult decisions on public spending and on tax credits - but we are taking two million out of income tax."