Budget hits the poorest hardest, says IFS
Date: 25th August 2010
Category: Family Environment and Alternative Care, Basic Health and Welfare
The coalition government's first Budget has hit the poorest families hardest, a leading economic think tank has said.
The Institute for Fiscal Studies (IFS) said the measures announced in the Budget in June were "regressive".
Its analysis suggests that low income families with children are set to lose the most - about 5% of net income - due to benefit cuts announced in the Budget.
The Treasury said it did not accept the "selective" findings of the IFS.
The IFS had already challenged the government's claim that the Budget was "progressive".
Its report was commissioned and part-funded by the End Child Poverty campaign.
The analysis suggests that 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.