Connect with us

Hi, what are you looking for?

Latest

IS THIS LEVELLING UP? Lack of support for poorest pushes 1.3m into poverty 

CHANCELLOR Rishi Sunak has been slammed for failing to help 1.3m of Britain’s poorest workers in his spring statement, pushing them into poverty. 

During his Spring statement yesterday, the Chancellor was praised for helping squeezed motorists with a 5p cut to fuel duty, but his Spring Statement has left more than one million Britons on the verge of “absolute poverty”, a leading think tank has said.

Where is child poverty increasing in the UK? | Action For Children

Resolution Foundation, a living standards think tank, warned Rishi Sunak’s measures represented a “big but poorly targeted policy package” which does not do enough to aid the families who have been hit the hardest by the cost-of-living crisis.

In his Commons statement, Sunak increased the threshold at which people pay national insurance contributions, benefiting around 30 million workers with a tax cut worth more than £330.

He promised further support in 2024 with a pledge to cut the basic rate of income tax from 20p in the pound to 19p – “a £5 billion tax cut for over 30 million people”.

Advertisement. Scroll to continue reading.

However, analysis from the Resolution Foundation said Mr Sunak’s measures do not meet the scale of the cost-of-living squeeze, with 1.3 million Britons set to fall below the poverty line next year, including 500,000 children – the first time Britain has seen such a rise outside of a recession.

Being poor is not inevitable or due to personal flaws. I know, I've been  there' | Poverty | The Guardian

It also determined that only one-in-eight workers will actually see their tax bills fall by the end of the parliament.

Resolution Foundation told Politicalite: “Considering all income tax changes to thresholds and rates announced by Rishi Sunak, 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 will pay less tax and national insurance.

“Of the 31 million people in work, around 27 million (seven-in-eight workers) will pay more in income tax and (national insurance) in 2024-25.”

The think tank added that typical working-age household incomes are set to fall by 4% in real terms next year, while incomes in the poorest quarter of households are expected to fall by 6%.

Advertisement. Scroll to continue reading.

Resolution Foundation chief executive Torsten Bell said: “The decision not to target support at those hardest hit by rising prices will leave low- and middle-income households painfully exposed, with 1.3 million people, including half a million children, set to fall below the poverty line this coming year.

“And despite the eye-catching 1p cut to income tax, the reality is that the Chancellor’s tax changes mean that seven-in-eight workers will see their tax bills rise. Those tax rises mean the Chancellor is able to point to a swift fiscal consolidation and significant headroom against his fiscal rules.

“The big picture is that Rishi Sunak has prioritised rebuilding his tax-cutting credentials over supporting the low-to-middle-income households who will be hardest hit from the surging cost of living, while also leaving himself fiscal flexibility in the years ahead.

“Whether that will be sustainable in the face of huge income falls to come remains to be seen.”

Advertisement. Scroll to continue reading.

More follows. 

Leave your vote

0 points
Upvote Downvote

Total votes: 0

Upvotes: 0

Upvotes percentage: 0.000000%

Downvotes: 0

Downvotes percentage: 0.000000%

DON'T MISS

TORIES

DEPUTY Tory Party enforcer has found himself on the wrong side of the whips office, after drunkenly groping two men. The Sun revealed Chris...

Latest

BRITAIN’S new Bill of Rights will not include ‘the right to an abortion’ as a human right in a win for UK pro-lifers. Deputy...

Boris

A PLAN by Boris Johnson to solve the global food crisis has been blocked by Joe Biden and Canada. The plan – that would...

Boris Johnson

BORIS Johnson has ‘done a Thatcher’ and has vowed to stay in Downing Street until 2033 – despite Tory plotters planning to oust him...

Advertisement

LIKE US ON FACEBOOK

FOLLOW US ON TWITTER

Hey there!

Forgot password?

Forgot your password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Close
of

Processing files…