Public funding cuts hit the poorest hardest
New Institute for Fiscal Studies research makes use of analysis published by the Department for Work and Pensions and attempts to reflect the impact of all the benefit cuts announced in the coalition Government's first Budget. It shows that, once all of the benefit cuts are considered, the tax and benefit changes announced in the emergency Budget are regressive.
The IFS's analysis suggests that low income families with children are set to lose the most - about 5% of net income. Cuts to areas such as housing benefit and disability allowance would hit the poorest to the tune of £422 between the Budget and April 2014. Other income groups are forecast to lose larger amounts in cash terms, but as a percentage of take-home pay, the poorest 10% will be hardest hit, the report says.
The Government has rejected this analysis.
You can download the report from the Institute for Fiscal Studies
You can the news story on the BBC
Posted on 26 August 2010
Further pages
- Huge fall in building of new affordable homes
- 'High pay at the top corrosive to the British economy'
- Average incomes rising much less than inflation
- Welfare reform risks 133,000 unable to afford rent
- Pay gap grows between top and middle earners
- GLA publishes child poverty update
- Public education spending to fall at fastest rate since 1950s
- FTSE 100 directors' pay up by 50%
- LSE to monitor poverty and inequality under the Coalition
- Is London the hardest region for poor children?
- Housing costs risk piling pressure on Outer London services
- New London's Poverty Profile launched
- Decade of rising poverty predicted
- Government housing policies assessed
- Childcare costs causing debt and poverty
- Pay and rewards risen faster at the top
- Mixed results on employment retention
- '1 in 4 London children overcrowded'
- Public support for tackling pay inequality
- Living costs rising faster for families
- 'Single mothers hit hardest by welfare changes'
- Disabled people 'face additional debt difficulties'
- Will the Work Programme fail the most disadvantaged?
- Incomes grew in 2009-2010 but future looks gloomy
- Poor 'experience worse inflation'
- London's Latin American community low-paid and exploited
- Child Poverty Action Group issues legal challenge to Government
- Women still behind in London's economy
- Government consults on new child poverty approach
- IFS predicts rising poverty
- London's poor hit harder by tax and benefit changes
- New information on rough sleeping
- In-work poverty on the rise in London
- Recession impacts most on East and Outer London
- New data available on London's debt
- New report on lifting families out of poverty
- London's public sector exhibits lower standards of living
- Public funding cuts hit the poorest hardest
- City Parochial becomes Trust for London
- VAT rise will hit the poor hardest
- Mayor announces increase in Living Wage
- London the 'most unequal city in the West', says academic
- New National Minimum Wage rates announced
- 'Worklessness costs London £5bn a year'
- Bus fare rise hits low-paid Londoners
- London's children in deepest poverty
- JRF launches housing and neighbourhood website
- Poverty in Hammersmith
- Focus on London 2009 published
- London Child Poverty Awards
- Recession poverty risk for BME Women
- Government reviews impact of recession
- Londoners face debt crisis
- Child poverty duty to become law
- London Living Wage increases
- London's Poverty Profile welcomed
- London's Poverty Profile launched
- New research about Latin American community in London
- Income inequality hit record high before the recession started
- London's economic environment remains harsh, says GLA
- Government will miss 2010 child poverty target
- Unemployment up across all London boroughs