The coalition government’s plans to cut the value of benefits payments will hit half of British working households, according to a government body’s analysis.
The Institute for Fiscal Studies (IFS) said about 7 million working households will have their incomes slashed by the benefits cap introduced by the Chancellor George Osborne.
The think-tank’s analysis also warned that the legislation would affect far more working households than workless ones as child benefits, maternity pay, and low pay tax credits are included in the cap.
The IFS’s announced the benefits crackdown “exposes the poorest to inflation risk” if prices increase unexpectedly in future.
This is while that, Osborne claimed in his last month’s autumn statement that the plans are to guarantee that “families out of work will not get more than the average family gets for being in work”.
The new IFS findings contradict the Chancellor’s stated intention of being fair to hard-working people as the plan will hit a whole range of Britain’s professions.