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Tory voter who confronted minister over tax-credit cuts may not be affected by reforms
Michelle Dorrell, a 35-year-old mother-of-four, broke down in tears on BBC's Question Time as she confronted a minister over cuts to tax credits
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By Steven Swinford, Deputy Political Editor
10:00PM BST 16 Oct 2015
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A tearful Conservative voter who confronted a minister on BBC's Question Time over cuts to tax credits is unlikely to be affected by the reforms, according to leading economists.
Michelle Dorrell, a mother-of-four, shouted "shame on you" as she confronted Amber Rudd, the Energy Secretary, over the welfare reforms and accused the government of taking the money she had worked "bloody hard for".
Jeremy Corbyn, the Labour leader, cited her intervention as he said that the government's tax credit cuts have "got to be stopped".
Amber Rudd, Enegry Secretary during Question Time Photo: Question Time/BBC One
However Ms Dorrell, 35, told The Telegraph that despite her passionate intervention she did not know how she was likely to be affected by the reforms.
She said runs a nail salon from her home in Folkestone but does not make a profit and relies on £400 a week worth of tax credits, child benefit and child maintenance.
She said that money is so tight that she sometimes goes without heating and has lost more than seven stone in the past three years because she can't afford enough food.
However, the Institute for Fiscal Studies suggested that because Ms Dorrell does not make a profit she is unlikely to be hit by changes to the income threshold for working tax credits, which is being almost halved to £3,850 a year.
She will also not be affected by the changes to child tax credits, which will only be restricted to the first two children for new parents from April 2017.
Tax Credit form Photo: ALAMY
David Phillips, a senior research economist at the IFS, said: "On what she has told us she wouldn't be affected by the cuts to the child tax credits or the change to the taper rate because she is not above the threshold.
"Even the family element thing comes in 2017, and will only apply to new claimants. However, these changes will have big impacts on a lot of families. Someone with two children on £20,000 a year stands to lose £2,000 a year."
Accountants said that she may face scrutiny from HMRC over her business under a new test for self-employed benefit claimants.
The test requires that in order for people to claim tax credits work must be carried out on a "commercial basis" with a "view to a profit".
Ms Dorrell said that her business makes a maximum of £150 week, all of which is put back into new products and advertising. The business has a website but is not advertised at her property.
Robin Williamson, an accountant at the Low Income Tax Reform Group, said: "If she receives no income from her business it is always possible that HMRC may investigate to see if this test is satisfied."
In her appearance on Question Time, during which she broke down in tears, Ms Dorrell said that she had voted for the Conservatives at he last election because she hoped they would "be the better chance for me and my children".
She said: "You're about to cut tax credits after promising you wouldn't.
"I work bloody hard for my money, to provide for my children to give them everything they've got - and you're going to take it away from me and them."
She said on Friday that while she will not vote for the Conservatives again, she praised Mr Corbyn for "bringing back the democratic process".
After leaving school at 16 she worked in call centres until she was aged 31. However, she spent 18 months on unemployment benefits after separating from her husband.
She said that she was determined to get back into work and decided to start her own business - Chelle's designer nails.
The Prime Minister's official spokesman said that the government is determined to "move move away from being a high welfare country to a low welfare country".
A Treasury spokesman said: “We cannot comment on individual circumstances, but the Government is determined to deliver a new settlement for the British people, one that will create a higher wage, lower tax and lower welfare economy.”
“The reforms to welfare set out in the Summer Budget are fair and necessary, and will take tax credit spending back only to 2008 levels, with most working households better off once all welfare reforms have come into force by 2017.”
Michelle Dorrell, a 35-year-old mother-of-four, broke down in tears on BBC's Question Time as she confronted a minister over cuts to tax credits
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How will cybernetics affect our future? Cyber-security expert Colin Williams explores the growing interaction between humans and technologySponsored by Warwick University
By Steven Swinford, Deputy Political Editor
10:00PM BST 16 Oct 2015
Follow
A tearful Conservative voter who confronted a minister on BBC's Question Time over cuts to tax credits is unlikely to be affected by the reforms, according to leading economists.
Michelle Dorrell, a mother-of-four, shouted "shame on you" as she confronted Amber Rudd, the Energy Secretary, over the welfare reforms and accused the government of taking the money she had worked "bloody hard for".
Jeremy Corbyn, the Labour leader, cited her intervention as he said that the government's tax credit cuts have "got to be stopped".
Amber Rudd, Enegry Secretary during Question Time Photo: Question Time/BBC OneHowever Ms Dorrell, 35, told The Telegraph that despite her passionate intervention she did not know how she was likely to be affected by the reforms.
She said runs a nail salon from her home in Folkestone but does not make a profit and relies on £400 a week worth of tax credits, child benefit and child maintenance.
She said that money is so tight that she sometimes goes without heating and has lost more than seven stone in the past three years because she can't afford enough food.
However, the Institute for Fiscal Studies suggested that because Ms Dorrell does not make a profit she is unlikely to be hit by changes to the income threshold for working tax credits, which is being almost halved to £3,850 a year.
She will also not be affected by the changes to child tax credits, which will only be restricted to the first two children for new parents from April 2017.
Tax Credit form Photo: ALAMYDavid Phillips, a senior research economist at the IFS, said: "On what she has told us she wouldn't be affected by the cuts to the child tax credits or the change to the taper rate because she is not above the threshold.
"Even the family element thing comes in 2017, and will only apply to new claimants. However, these changes will have big impacts on a lot of families. Someone with two children on £20,000 a year stands to lose £2,000 a year."
Accountants said that she may face scrutiny from HMRC over her business under a new test for self-employed benefit claimants.
The test requires that in order for people to claim tax credits work must be carried out on a "commercial basis" with a "view to a profit".
Ms Dorrell said that her business makes a maximum of £150 week, all of which is put back into new products and advertising. The business has a website but is not advertised at her property.
Robin Williamson, an accountant at the Low Income Tax Reform Group, said: "If she receives no income from her business it is always possible that HMRC may investigate to see if this test is satisfied."
In her appearance on Question Time, during which she broke down in tears, Ms Dorrell said that she had voted for the Conservatives at he last election because she hoped they would "be the better chance for me and my children".
She said: "You're about to cut tax credits after promising you wouldn't.
"I work bloody hard for my money, to provide for my children to give them everything they've got - and you're going to take it away from me and them."
She said on Friday that while she will not vote for the Conservatives again, she praised Mr Corbyn for "bringing back the democratic process".
After leaving school at 16 she worked in call centres until she was aged 31. However, she spent 18 months on unemployment benefits after separating from her husband.
She said that she was determined to get back into work and decided to start her own business - Chelle's designer nails.
The Prime Minister's official spokesman said that the government is determined to "move move away from being a high welfare country to a low welfare country".
A Treasury spokesman said: “We cannot comment on individual circumstances, but the Government is determined to deliver a new settlement for the British people, one that will create a higher wage, lower tax and lower welfare economy.”
“The reforms to welfare set out in the Summer Budget are fair and necessary, and will take tax credit spending back only to 2008 levels, with most working households better off once all welfare reforms have come into force by 2017.”
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