Nearly 3m working households with children on tax credits face average loss of £2,500 a year, according to thinktankLow-income working families face significant reductions in income as a result of planned cuts to benefits, according to the Institute for Fiscal Studies (IFS). The scheduled cuts for lower-income families come alongside tax breaks worth £5bn a year that predominantly benefit middle- and higher-income households. Pensioner households are mostly protected from future benefit cuts. Tom Waters, a research economist at the IFS, said: “As suggested by the 2015 Conservative manifesto, the government have announced income tax cuts that mostly benefit middle- and higher-income households and working-age benefit cuts that mostly hit lower-income households. “The Brexit squeeze will hit people in the pocket across the country, with the poorest families hit hardest.”

Source: The Guardian April 27, 2017 16:57 UTC