Liberal Democrats launch proposals to tackle poverty in Suffolk.

3.51.04pm BST (GMT +0100) Fri 27th Jul 2007

A plan to help thousands of people in Suffolk back into work and off benefits has been welcomed by a leading local Liberal Democrat.

The plans, launched by the Liberal Democrat Party today, include:

· Reforming the massively complicated tax credits system to make it simpler and to end massive overpayments;

· Increasing child benefit by around £5 a week for families in Suffolk;

· A "pupil premium" that will boost schools in Suffolk serving children from deprived areas;

· Immediately restoring the earnings link to the basic state pension to ensure the income of older people does not fall further behind that of the rest of the population.

Deputy Leader of Suffolk County Council's Liberal Democrats, Cllr Andrew Cann said, "Under Labour, the difference between rich and poor is wider than it was under Margaret Thatcher. As Chancellor, Gordon Brown allowed the tax burden to go up on those with the lowest incomes.

He has given us the massively complicated tax credits system that is riddled with errors. Here in Suffolk £16.2 million was overpaid to residents in the last financial year, which the Treasury then demanded back. Yet at the same time, the tax credit system is a disincentive to people on benefits to work.

Our proposals to tackle poverty will ensure there is a greater incentive to work and save for retirement.

By scrapping council tax and lowering the rate of income tax, we will ensure that when people come off benefits and start work, less of their hard earned money is taken from them by the government.

Furthermore, the additional £5 a week for all families with children will be a real helping-hand for many families in Suffolk. Our proposals will see additional funding for children from the most deprived areas going straight to their schools will give them a better start in life. With a better education, they are less likely to become dependent on benefits in later life.

As a Councillor I meet many elderly people and I have seen how their income and standard of living has fallen behind that of the rest of the population, the Libdem proposal to link the basic state pension to the average rise in pay will make a big difference to them. Something much needed in Suffolk now."