Friday, August 22, 2014

Welfare reforms fail the Prime Minister’s new family test, says TUC


A new report from the TUC says the majority of social security cuts announced by the government will fall on working families, who will suffer twice the level of benefit losses as out of work families.

The majority of social security cuts announced by the government will fall on working families, who will suffer twice the level of benefit losses as out of work families, according to a new report published today (22 August) by the Trades Union Congress (TUC).

The TUC-commissioned analysis of those affected by cuts in social security support – undertaken by Howard Reed of Landman Economics – looks at all the welfare changes announced during this Parliament. It finds that annual cuts to key benefits will reach £30.5 billion by 2016/2017.

Ministers frequently talk about how their welfare reforms target workless households. But the TUC analysis finds that most of the cuts will fall on working families, with working parents and their children facing the biggest cuts of all.

Working families will suffer a loss of social security support worth £17.9 billion a year by 2016/17, twice the level (£6.2 billion a year) experienced by out of work families.

Working families with children stand to lose the most – £11.7 billion a year. With out of work families with children losing a further £2.3 billion a year, the total cost of welfare cuts to families with children will be £14.1 billion a year by 2016/17.

The TUC analysis shows that three-quarters of all welfare cuts to people of working age will be on working families, with almost half hitting working families with children.

The government’s welfare reforms have already failed the Prime Minister’s new ‘family test’ in spectacular fashion, says the TUC, with working parents and their children billions of pounds worse off as a result.

The analysis also shows that the Prime Minister’s pre-election pledge to protect pensioner benefits has been broken, with pensioner families suffering a loss of benefit support worth £6.4 billibn a year by 2016/17.



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