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150711budgetimpact

George Osborne’s claim that a boost to incomes from his National Living Wage would leave ordinary families with a higher standard of living is bunk, according to the i paper and the Institute for Fiscal Studies.

The IFS said the budget would make the poorest 10 per cent of families about £800 a year worse off by 2019, while the next-poorest 10 per cent would suffer a greater loss as their annual incomes were slashed by £1,100.

The regressive nature of Osborne’s changes is revealed by the fact that the richest 10 per cent of families will see their incomes fall by only £350 a year, while the second-richest 10 per cent will lose virtually nothing.

“Child poverty is expected to shoot up and the majority of losers from the squeeze on tax credits will be people in work,” the newspaper stated.

And IFS director Paul Johnson pointed out that the £4 billion aggregate increase in employment income from Osborne’s £9-per-hour Living Wage would not compensate for the £12 billion cut in social security. Both are to be in place by 2020.

Osborne’s budget is more like Pandora’s Box – the more we see of it, the worse the evil that comes out of it.

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