Expert Analysis Warns of Big Losses for Low Income Families

Expert analysis is warning that yesterday’s Tory budget will hurt low income families.

Think-tank the Resolution Foundation published the analysis stating that “severe welfare cuts” will mean “big losses for many low-income families” – with a single parent with one child working 20 hours a week at £9.35 an hour ending up £1,000 a year worse off.

It also points out that Tax Credits, the Minimum Wage and the Living Wage currently complement each other and the Living Wage and Minimum Wage would need to rise further to compensate for the cuts announced today.

Resolution Foundation chief executive Gavin Kelly said it will take “many struggling families years before they earn their way back to their current position”.

Commenting on the report, Renfrewshire North & West MSP Derek Mackay said:

“This expert analysis raises massive concerns, warning that the welfare cuts in George Osborne’s Budget will result in many families facing big financial loses – with a single parent with one child facing loses of up to £1,000 a year.

“The plans to introduce a National Living Wage, which is actually lower than the current Living Wage in Scotland, are a ‘con-trick’ that will actually result in slower growth in wages.

“It is now more important than ever that the Scotland Bill is strengthened to ensure that the powers to support and empower the least well off and most vulnerable people in society are in Scotland’s hands.”


The report can be found in full at

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