A CUT to tax credits, a freeze in benefits and the scrapping of maintenance grants for students formed part of the Chancellor’s announcement to cut the welfare budget today.

Mr Osborne outlined how he intends to make £12 billion worth of savings from the government’s welfare budget during his speech in the Commons.

The move that could most affect families in Bolton is a plan to cap child tax credits.

This will mean that parents will only be able to claim the benefit — which includes a flat rate of £545 per year, plus up to £2,780 per child — for up to two children from April, 2017.

For Horwich dad Greg Smith and his wife Heather, tax credits meant the difference between both parents working or one having to stay at home.

Mr Smith, aged 37, who has a six-year-old child and a 20-month-old said: “We are lucky because we aren’t planning to have any more.

“But if we were, the removal of the child tax credit for that child would mean that both of us working wouldn't be doable.

“That money is a massive help as it helps to pay for childcare costs when the kids are between nought and three years old and if we hadn’t had it one of us would have had to come out of work because we would actually have been paying to be able to go to work.”

Other welfare cuts announced by the Chancellor included the freezing of working-age benefits for four years, including local housing allowance, but excluding maternity pay and disability benefits

The benefits cap — which is the amount a family can claim in one year — will be lowered to £20,000 for people in Bolton and maintenance grants for students will also be scrapped and converted to loans.

New Conservative MP for Bolton West, Chris Green chose to focus on the fact that Mr Osborne has increased the personal allowance — the amount people can earn before they start paying tax.

He said: “The rise in the personal allowance will mean lower taxes for around 41,582 working people here in Bolton West with an estimated 872 people taken out of income tax altogether.”

“This Budget ensures that Britain will have a responsible tax and benefits system — local people will be keeping more of the money they’ve worked hard to earn, giving them and their families more financial security for the future.”