Tory benefits freeze means tax cuts won’t help low-income families

‘Tax cuts promised by the three main parties will be no more than an illusion for up to 3.3m low income families, according to research for The Independent.

The Resolution Foundation think tank studied George Osborne’s decision in his Autumn Statement to freeze until 2018 the work allowance – the amount people on benefits and tax credits can earn before their in-work state support starts to be withdrawn.

This first study of its impact found that a couple with children would need to see their combined earnings rise by more than £1,300 just to wipe out the income lost from the freeze, which began in 2013. This means their income would have to rise by 10 per cent more than the wage increases forecast by the Office for Budget Responsibility.’

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