The Tory- led coalition has helped the rich to get richer and it is the poor who’ve paid for it, according to a new study. The report published last week was produced jointly by Essex University and the London School of Economics.
The study found that the Chancellor of the Exchequer, George Osborne-who famously said “we’re all in this together”-has been engaged in a significant transfer of income form the least well off half of the population to the ore affluent in the past four years.
The government had always insisted that the burden of austerity should be shared fairly and equally, but the research found startling evidence indicating that the poorest have been hit hardest. In many ways it’s not surprising of course. But this independent study provides some startling evidence to support, what has been, theory.
The researchers revealed, among other things, that with the exception of the top 5% of the country who lost a total of 1% of their potential income, the more well off half of the country has gained financially from benefit and income tax changes, seeing increases of between 1.2% and 2% in their disposable income.
The top 1% income earners have seen net gains following changes introduced by the coalition government which include a cut in the top rate of income tax.
Meanwhile, lone parents lost much more through cuts to benefits and tax credits while being faced with higher income tax allowances. Also a quarter of those on the lowest pay have shouldered a particularly heavy burden losing more than 5% of what would have been their income without the coalition’s reforms, the report found.
Labour is right to assert that neither the pain of austerity nor the rewards of the economic recovery have been equitably shared. Indeed, the Guardian reported on Saturday that Ed Miliband told a meeting of party members in the West Midlands: “This country is too unequal and we need to change it.”
The Trussel Trust, which runs emergency food banks in the UK predicts an increase in attendance over the next few months. Its chairman, Chris Mould, told the Observer: “It is not true to say that we have all been in this together. It is time we were honest about that and made a decision about whether we are happy with that.”
While Matthew Reed, chief executive of the Children’s Society, responded to the report by stating: “This important analysis offers further evidence that children in low-income families are among the groups losing the most as a result of cuts to benefits and tax credits.”
Lord Sugar, has urged David Cameron to offer more support to the growing numbers of self-employed workers after official figures revealed their pay has plummeted under the Tory- led coalition government.
The Institute for Fiscal Studies revealed self-employed incomes have fallen 14% since 2010 when Cameron came eto office.
Meanwhile a separate analysis from the Office for National Statistics revealed the average real income of the self-employed fell by 9%, from £24,000 to £22,000 a year.
Lord Sugar called for the Prime Minister to: “Clear the path for hard-working self-employed people to concentrate on what they do best”.
The actress Imelda Staunton has made an interesting observation. She said that while older women are celebrated in this country in film and television at least, pressure is applied in the form of impossible images which younger women are expected to uphold which she described as “wrong’ and “revolting”.
She was speaking at a Telegraph Wonder Women event.
Filed under: Labour Party Tagged: coalition government, David Cameron, Essex University, George Osborne, Imelda Staunton, Institute of Fiscal Studies, LSE, The Trussel Trust
