The Resolution Foundation think tank said the real income of a typical working-age household will fall by 4% over the next year, plunging millions into absolute poverty, including 500,000 children
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Around 1.3 million Britons will be dragged into poverty, including half a million children Rishi Sunak‘s spring declaration, finds a devastating analysis today.
The Resolution Foundation think tank said the real income of a typical working-age household will fall by 4% over the next year – a loss of £1,100.
The experts said: “The magnitude and distribution of cost-of-living pressures, along with a lack of support for low-income families, means that over the next year a further 1.3 million people will fall into absolute poverty, including 500,000 children – which Britain has outside for the first time seen such a spike from recessions.”
Despite yesterday’s tax cuts, the think tank said only those earning between £49,100 and £50,300 will actually pay less income tax in 2024-25.
And only those earning between £11,000 and £13,500 pay less tax and National Insurance (NI).
Of the 31 million workers, around 27 million (seven out of eight workers) will pay more income tax and NI in 2024-25, the think tank says.
By 2027 revenue will be £11,500 short of what it would have achieved if it had continued to grow on the pre-2008 trajectory.
Adam Gerrard / Daily Mirror)
Torsten Bell, Chief Executive of the Resolution Foundation, said: “As a cost of living crisis looks set to make this Parliament the worst on record for household incomes, the Chancellor came to the mail box yesterday and pledged support for the cost of living today and tax cuts tomorrow.
“Significant action has been announced on both counts, but the big picture is that the politics don’t live up to the rhetoric.
“The decision not to target support to those hardest hit by rising prices will leave low- and middle-income households painfully exposed as 1.3 million people, including half a million children, fall below the poverty line in the coming year will.
“And despite the eye-catching 1p cut in income tax, the reality is the Chancellor’s tax changes will mean seven out of eight workers will see their tax bills increase. These tax hikes mean the Chancellor can point to rapid fiscal consolidation and significant room to maneuver over his fiscal rules.
“The overall picture is that Rishi Sunak has prioritized rebuilding its tax-cut credentials over supporting low- to middle-income households, who will be hit hardest by the rising cost of living, while allowing for fiscal flexibility in the years to come.
“It remains to be seen whether that will be sustainable given the huge falls in incomes to come.”
https://www.mirror.co.uk/news/politics/roughly-13m-brits-thousands-kids-26543079 Around 1.3 million Britons are being dragged into absolute poverty, devastating analysis shows