Articles
Think the cuts are biting? The pain has hardly begun, Independent
Date: 25. April 2011 / Category: Government
Gavin Kelly
Analysis: The most politically dangerous cut will kick in in 2013 - the abolition of child benefit for higher-rate taxpayers
Buoyed by a run of bank holidays and balmy weather, optimistic families may think that, having absorbed the changes announced in April's Budget, the worst is behind them. Sadly, that is a false hope. Plenty more pain is in the pipeline.
To see why, just look at what is coming in terms of cuts, wages, and interest rates. The cuts that kicked in on "Worse-off Wednesday" accounted for a mere 10 per cent of the total savings arising before 2015 from changes to tax credits and child benefit. The pain is "back-loaded"; over 40 per cent of these cuts kick in in 2013.
Alan Johnson benefits budget 2011 chancellor Commission on Living Standards cost of living cuts David Cameron economy family food prices Gavin Kelly good life homeownership Housing income Independent inequality James Plunkett Labour Party Lib Dems living standards Middle Britain new statesman pension private rented prospect magazine social housing spending cuts Spending Review squeezed Squeezed Middle tax tax credits Treasury welfare
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