The poorest in society are being hit the hardest by changes to tax, social security and public spending reforms, and are set to lose 10% of their income, our new report has revealed.
Ahead of this week’s budget, the Commission has published its independent report on the impact that changes to all tax, social security and public spending reforms from 2010 to 2017 will have on people by 2022.
Whilst the poorest are set to lose nearly 10% of their incomes, the richest will lose barely 1%.
Undertaken as a ‘cumulative impact assessment’, the report, which looks at the impact the reforms have had on various groups across society, suggests the decisions will also affect some groups more than others:
- black households will face a 5% loss of income (more than double the loss for white households)
- families with a disabled adult will see a £2,500 reduction of income per year (this is £1,000 for non-disabled families
- families with a disabled adult and a disabled child will face a £5,500 reduction of income per year (again, compared to £1,000 for non-disabled families)
- lone parents will struggle with a 15% loss of income (the losses for all other family groups are between 0 and 8%)
- and women will suffer a £940 annual loss (more than double the loss for men)
- the biggest average losses by age group, across men and women, are experienced by the 65 to 74 age group (average losses of around £1,450 per year) and the 35 to 44 age group (average losses of around £1,250 per year)
David Isaac, the Chair of the Commission, which is responsible for making recommendations to government on the compatibility of policy and legislation with equality and human rights standards, warned of a 'bleak future'.
Mr Isaac said: