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Poor ‘will suffer most’ in next recession
BRITAIN’S poorest families will suffer the most in the next recession because of cuts to welfare payments, the Institute for Fiscal Studies (IFS) warns today.
Tory changes to social security — such as universal credit, the freeze on working-age benefits and cuts to child tax credit — mean low-income households will have significantly less “insurance” if earnings fall.
The poorest households will lose an average of 53p after tax for every £1 fall in their pre-tax income when recession hits, up from 39p under the current arrangements.
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