IFS analysis shows Tories balancing books on backs of the poorest
The Liberal Democrats have accused the Conservative government of "balancing the books on the backs of the poorest," after analysis of the Budget by the Institute for Fiscal Studies revealed there are another £12 billion of planned welfare cuts.
The analysis found that the four-year freeze in welfare is now set to lead to 11 million households losing an average of £400 each by 2019, with the poorest 20% of families hit hardest.
The analysis also found average earnings in 2021 look set to plunge to £1,400 lower than forecast in March 2016 - which is lower in real terms than at the time of the financial crash in 2008.
Stephen Lloyd MP, Liberal Democrat Work and Pensions Spokesperson, commented:
“This analysis lays bare the utter inadequacy of the funding announced for Universal Credit in yesterday’s budget.
“The Tories are balancing the books on the backs of the poorest, at a time when inflation and personal debt are rising instead of incomes.
“£12 billion worth of cuts aimed at the most vulnerable are still to come, dwarfing the extra £300 million a year promised by the Chancellor.
“A Liberal Democrat budget would have helped the poorest in society by reversing Conservative tax cuts for the super-rich.”