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DAD.info | Opinion | Latest News | Tax changes hit families and poor

Tax changes hit families and poor

A new report by the London School of Economics has found that families with young children and poorer households are the worst affected by government changes to tax and benefits.

 

It also says that some families may have lost out on around £1,200 in their baby’s first year.

The report by LSE and the universities of Manchester and York examines the coalition’s tax and spending record.

It claims that as a result, poverty has been increasing and will get worse in the next five years.

It says families with young children have been hit harder than any other household type under the Coalition’s cuts.

Kitty Stewart is author of the part of the report examining the impact on under-fives she said: “That it’s families that are taking the biggest hit is really disappointing and short-sighted.”

She added: “We know that family income and services are important to children’s development. All the research evidence tells us both of those matter and both of those have been hit.”

Real spending per child on early education, childcare and Sure Start services fell by a quarter between 2009-10 and 2012-13 and tax-benefit reforms hit families with children under five harder than any other household type.

Policies affecting families with young children include the abolition of baby tax credit which increased the payments for households with a child under one and extra support for pregnant women.

Earlier this month, the Institute for Fiscal Studies said that Coalition changes to taxes and benefits have cost the average UK household £489 a year.

Their report found that those with children in the lowest 10 per cent of earners lost £1,223 on average.

It says the richest 10 per cent of households with children lost £5,350 a year.

If you are on a low income you may be able to get financial help, depending on your circumstances.

For more information visit: www.nationaldebtplan.co.uk

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