Families in the UK that have three or more children will feel the effects of the changes in tax and benefits that are set to reduce the deficit, according to a report revealed by the Family and Parenting Institute.
The organization says that the average income of families with children will decrease by 4.2 percent between 2010 and 2016 with an average equivalent of £1,250 annually. The household income per year will decrease by 0.9 percent or £215 annually.
According to the UK government, they are putting up the right measures and “practical steps” in order to assist in this loss such as decreasing fuel duty and income tax.
The report published by the Family and Parenting Institute included calculations made by the Institute for Fiscal Studies. It included predictions in the decline of income for the years that were mentioned and are attributed to the tax and benefit changes, as well as declining incomes.
According to Katherine Rake of the FPI, “This research confirms that families with children are shouldering a disproportionate burden. This disparity is largely driven by a package of benefit reforms which have affected families with children. As a result of the changes being introduced between January 2011 and April 2014 families are set to lose more than pensioner households and working-age households without children.”
The government said in a statement that the Prime Minister has recognized the current problem and the government has confirmed that there will be an increase in working age benefits in April by 5.2 percent.”
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