George Osborne's plans will hit poor, says think-tank
The poor will be penalised and the better-off helped by George Osborne's latest economic measures, the respected Institute for Fiscal Studies has said.
The poor will suffer disproportionately from the Chancellor's failure to increase tax credits, the IFS says, and will not benefit as much as the more well-off from the delay of the fuel duty increase (because they drive less).
The overall effect of the Treasury's new plans will be to reduce the incomes of those in the bottom 30% of earners and to benefit those in the top 60%.
The Chancellor's decision will push more children into poverty, IFS researchers conclude.
Mr Osborne's spending review last year was “clearly regressive”, the IFS said, pointing out that decisions to cut disability allowances hit the poorest earners.
Those with an annual income of £15,600 will lose an average of £44.75 in the year 2012-13. Those earning £18,200 will be worse off by about £36 in the same year.
By contrast, those with an annual income of £76,100 will benefit by about £105, thanks to the most recent tax changes. Those with a yearly salary of £45,300 will get £98 more.