David Cameron's vow to make work pay could be "shattered" by cuts to childcare support, a think tank says.

Changes to childcare tax credits, due to come into force in 2013, could leave some parents losing 94p for every extra pound they earn, the Resolution Foundation said in a report.

Mr Cameron promised to end the "injustice" of low-paid lone parents losing out by working extra hours.

But the Resolution Foundation report, commissioned by lone-parent charity Gingerbread, cast doubt on this claim - and suggests the government will "fail" its own test on welfare reform by putting people off working.

Living standards are already severely squeezed and this would be a further hammer-blow to working families”

Gavin Kelly
Resolution Foundation
A single parent on the minimum wage would earn £3 a week more if he or she decided to work four days a week rather than three, the report suggests.

not even enough for a packet of fags