Personally I'd raise the tax threshold significantly to remove the dependence on tax credits. (It would be a very slow move towards a universal income).
The problem I will always have, the further left you go is that I do think people should be free to spend what they earn on what they like (hence my rather confusing antipathy to market distortions like the ticket resale kludge).
However I also think that if you left people to their own devices you end up with formalised tyranny.
As with the Buddhism of my youth, I prefer the middle way ....