The era of austerity is not over for working families on benefits or government departments like transport, according to one of the first independent analyses of the Budget by the Resolution Foundation. It said that richer households would feel the most positive effects.
The report highlighted that many of the cuts to welfare announced in 2015 are still to be rolled out. That includes the £1.5bn benefits freeze for people in work which the foundation said would see a low-income couple with children up to £200 a year worse off.
The Resolution Foundation said it was the top 10% of households that would gain most - around £410 a year - from the decision to increase the amount people can earn before they start paying income tax and the higher rate of tax. Poorer households would gain around £30 a year.
In total, 84% of the income tax cuts announced on Monday will go to the top half of the income distribution next year, rising to 89% by the end of the parliament.
The overall package of tax and benefit changes announced since 2015 will deliver an average gain of £390 for the richest fifth of households in 2023-24, the thinktank found, compared to an average loss of £400 for the poorest fifth.
In total, 84% of the income tax cuts announced on Monday will go to the top half of the income distribution next year, rising to 89% by the end of the parliament.
The overall package of tax and benefit changes announced since 2015 will deliver an average gain of £390 for the richest fifth of households in 2023-24, the thinktank found, compared to an average loss of £400 for the poorest fifth.
No comments:
Post a Comment