GOVERNMENT cuts to tax credits could deal a 'devastating' blow to thousands of people in Radcliffe, Labour politicians claim.

According to figures obtained by the Labour Party, up to 4,500 households in the town could be affected by the proposed changes, which are set to be confirmed in Chancellor George Osborne's autumn statement next Wednesday.

Opponents of the tax credit cuts have said the average family could be £1,300 worse off if the Government's plans were to go ahead.

Bury South MP Ivan Lewis said: "These cuts do nothing more than penalise those working hard in Radcliffe to get by. It is misleading to suggest that those who will see their tax credits cut will not suffer a fall in income because of an increase in the minimum wage due next April.

"Given that the Tories have already cut taxes for millionaires, the reduction in tax credits shows they are certainly not the party of working people but simply the privileged few."

The Radcliffe figure is an estimate based on factors that affect whether people may be able to claim the benefits, including income profiles and types of housing. Tax credits were introduced by the last Labour government to help low-income families.

Last month, the House of Lords voted to delay the cuts that would see the income threshold for working tax credits reduced from £6,420 to £3,850, meaning that as soon as a person earns £3,850 they would see their payment of tax credits reduced.

The threshold for those claiming child tax credits would be cut from £16,105 to £12,125, with the changes due to come into effect in April next year.

Mr Osborne is expected to set out how he will modify the proposals next week, after criticising Labour and Liberal Democrat lords who voted down the plans.

Cllr Rishi Shori, deputy leader of Bury Council, added: "The potential impact on people in Radcliffe could be devastating. The Labour Party fought the tax credit changes in the House of Lords as they are manifestly unjust. We hope the Tories will see sense and back down."

Cllr Iain Gartside, Bury Council's Conservative Group leader, said the impact of any tax credit cuts can only be judged once the Chancellor makes his autumn statement.

He said: "The Chancellor's statement is coming and we will know what the full implications will be then. That's when we will really see how people will be affected, rather than current figures which are based on speculation.

"The issue of tax credits is a very complicated one that affects different people in different ways. I know there have been many Labour MPs over the years who have also opposed the idea of tax credits since their introduction because they have allowed certain employers to get away without introducing a proper minimum wage."