A British economic think-tank has warned that the new budget plan introduced by the Tory government will negatively affect the low-income workers.
The Institute for Fiscal Studies (ISF) said George Osborne’s new “living wage” will fail to compensate poor households for the £12bn cuts.
The ISF described the plan as regressive as regressive and said it would take “much more” from the poor than the rich.
“Unequivocally, tax credit recipients in work will be made worse off by the measures in the budget on average,” IFS director Paul Johnson was quoted as saying by the British media.
According to IFS, 13 million British families would lose an average of £5 a week by 2020 as a result of the new “living wage”.