---

Living Standards

Let me make a little more progress. We want to target support where it is needed most. Tackling the deficit fairly requires us to ensure that tax credits are targeted at our poorest and most vulnerable families. We simply could not continue on the path that the previous Government took. From 2003-04 to 2010-11, spending on tax credits increased from £18 billion to an estimated £30 billion, with nine out of 10 families with children eligible for tax credits. In total, the previous Government had spent more than £150 billion on tax credits since 2003—a staggering sum, poorly targeted and an unsustainable level of spending. It is absolutely right and fair to reform the system to support those who need it most.