OIK BUDGET MEANS THREE MILLION POOR FAMILIES TO EACH LOSE FIVE THOUSAND POUNDS PER YEAR

All in this together, my arse!

Paul Johnson has been speaking on WATO. He said that, of the range of cuts included in yesterday’s budget plans, the freezing of most working age benefits through to 2020 would have the biggest effect, saving £4bn over that period. 13m UK families will lose average of £260 a year due to budget’s freeze on working-age benefits

The reduction of the work allowance will also have a huge effect, he said, meaning cuts will be bigger for those with a job, reducing incentives for people to move into work.

The minimum wage announcement won’t “anywhere near compensate in cash terms” for the welfare cuts, he said. People currently on tax credits will be “significantly worse off” and the reform would cost 3m families an average of £5,000 per year each.

The public sector pay rise cap of 1% is more dramatic than it seems, says Paul Johnson. By 2020 public sector pay will be much lower compared to private sector pay than it has been for 30 years.

[source : The Guardian, http://www.theguardian.com/politics/live/2015/jul/09/reaction-summer-budget-conservative-george-osborne-politics-live, 9th July 2015]