Tax changes since 2010 have 'adversely affected families with children'

Research carried out by the Institute for Fiscal Studies (IFS) has suggested that families with children were hit the hardest by tax and benefit changes since 2010.

11 Jun 2024

Research carried out by the Institute for Fiscal Studies (IFS) has suggested that families with children were hit the hardest by tax and benefit changes since 2010.

The IFS said that, among the 7.6 million households with children, changes to the tax and benefit system have reduced entitlements by £2,200 per year, on average. It stated that, taken as a whole, tax and benefit reforms since 2010 have reduced incomes for the poorest 40% and the richest 10% of UK households.

According to the IFS, a small number of families will have benefitted from increased childcare provision, but nowhere near enough to offset the effect of cuts to benefits.

Tom Waters, Associate Director at the IFS, commented: 'There has been a steady shift over the past 14 years from cash support for families with children to in-kind support through childcare. But the latter only offsets a small fraction of the former. Taken together with other benefit reforms, this has led to big declines in support for the poorest households.'

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