Budget 2015: tax credit claimants will be up to £1,000 a year worse off, says IFS

Institute for Fiscal Studies thinktank warns that low-income workers will not be compensated by 'living wage' measures announced in chancellor's budget

George Osborne's new "living wage" will fail to compensate low-income workers for the 12bn cuts in the welfare budget, some of which will leave tax credit claimants up to 1,000 a year worse off, according to the Institute for Fiscal Studies.

In its analysis of the chancellor's budget, the IFS said the budget was regressive, taking "much more" from the poor than the rich. IFS director Paul Johnson said: "Unequivocally, tax credit recipients in work will be made worse off by the measures in the budget on average."

Impact of tax and benefit reforms between Jan 2010 and April 2019 (incl. universal credit): http://t.co/Gd3KOr1mA2 pic.twitter.com/LkDwX4SGzX

Read the devastating @TheIFS verdict on the Budget. Then look at this picture again. Nasty Party is well & truly back pic.twitter.com/f0c7Ysfp6t