Budget 2012: The IFS’s devastating picture that shows we’re not all in it together

Will Straw reports on the IFS’s budget analysis, which shows the richest 10% have done better under this government than the poorest 40 per cent.

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The IFS carried out their customary budget analysis (pdf) today. In among the slides was the chart below, which shows the regressive nature of not only this budget but the totality of tax and benefit changes implemented by the Coalition.

See Chart:

Budget-2012-Impact-of-changes-taking-effect-by-April-2014
The blue line shows how, with the exception of the richest 10 per cent, the tax changes announced yesterday will benefit those further up the income distribution. Forthcoming analysis by IPPR’s Kayte Lawton breaks down the impact of the tax threshold change in greater detail.

The purple line shows the impact of all changes implemented by the coalition. This includes freezes to tax credits, cuts to support for childcare for low earners, and the switch to CPI for uprating benefits. It clearly shows that even the richest 10 per cent have done better under this government than the poorest 40 per cent of households.

The group that have done least badly are those earning more than 80 per cent of the rest of the population. These are families with a combined annual disposable income of around £35,000 (ie after all tax and benefits have been taken into consideration).

The red line shows how this picture will be largely changed by the universal credit which will target benefits at people working fewer than 16 hours per week. This reform, which is largely sensible, is to be welcomed but will not be fully implemented until 2014 – four years after the coalition came to power.

 


See also:

Budget 2012: Good or bad? For the few or the many? Vote in our survey 22 Mar 2012

Budget 2012: “Clegg’s face said it all: Distant, pale and sullen” – Sco/Wal/NI reaction 22 Mar 2012

Budget 2012: Osborne hasn’t done enough to help unemployed in the north 22 Mar 2012

Budget 2012: Impact per decile – the poorer you are, the harder you’re hit 21 Mar 2011

Budget 2012: It may do nothing for growth, but the fat cats will purr more loudly 21 Mar 2012


 

All in it together? Not according to the IFS.

 


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29 Responses to “Budget 2012: The IFS’s devastating picture that shows we’re not all in it together”

  1. Anonymous

    Only if you zero-rate the time of people who UC will force into conditionality, and discount the additional costs it’s going to impose.

  2. Lord Blagger

    What’s missing?

    Just the extent to which the government is ripping people off.

    Publish the numbers for hard cash that the government takes off people

  3. Mr. Sensible

    I think Cameron and Osborne are actually due some credit for managing to unite the Daily Mirror and the Daily Mail against them…

  4. Anonymous

    That’s right, the cold-hard truth that people *benefit* from using government services. Oh wait, you want only one side seen. Typical Tory.

  5. Foxy52

    The chart that shows we’re not all in it together: http://t.co/bD5VOPGB Top 10% hv done better under this govt than the poorest 40% #BBCqt

  6. Simon

    The chart that shows we’re not all in it together: http://t.co/bD5VOPGB Top 10% hv done better under this govt than the poorest 40% #BBCqt

  7. Lynn Sheridan

    The chart that shows we’re not all in it together: http://t.co/bD5VOPGB Top 10% hv done better under this govt than the poorest 40% #BBCqt

  8. Avast Honk

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  9. Panda

    The chart that shows we’re not all in it together: http://t.co/bD5VOPGB Top 10% hv done better under this govt than the poorest 40% #BBCqt

  10. karl thompson

    RT @TheRightArticle: Budget 2012: The IFS’s devastating picture that shows we’re not all in it together – http://t.co/Mdxntzww

  11. Redstar PCS Stoke

    The chart that shows we’re not all in it together: http://t.co/bD5VOPGB Top 10% hv done better under this govt than the poorest 40% #BBCqt

  12. Rick Muir

    RT “@leftfootfwd: The chart that shows we’re not all in it together: http://t.co/CxKMJYsU #BBCqt” > by @wdjstraw

  13. Ivana Bartoletti

    The IFS’s picture showing that the richest 10 per cent have done better than the poorest 40 per cent of households.http://bit.ly/GMIs3D

  14. Lucy Rigby

    RT “@leftfootfwd: The chart that shows we’re not all in it together: http://t.co/CxKMJYsU #BBCqt” > by @wdjstraw

  15. KEVIN COCHRANE

    The chart that shows we’re not all in it together: http://t.co/bD5VOPGB Top 10% hv done better under this govt than the poorest 40% #BBCqt

  16. Jonny Butcher

    RT “@leftfootfwd: The chart that shows we’re not all in it together: http://t.co/CxKMJYsU #BBCqt” > by @wdjstraw

  17. James

    "@IPPR: RT “@leftfootfwd: The chart that shows we’re not all in it together: http://t.co/QWOC3uDX #BBCqt” > by @wdjstraw" eeek

  18. Marzia Gitto

    The chart that shows we’re not all in it together: http://t.co/bD5VOPGB Top 10% hv done better under this govt than the poorest 40% #BBCqt

  19. Yvonne Roberts

    RT @leftfootfwd: Budget 2012: The IFS’s devastating picture that shows we’re not all in it together http://t.co/WMf8cFQr

  20. Colin Pari

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  22. liane gomersall

    RT @leftfootfwd: Budget 2012: The IFS’s devastating picture that shows we’re not all in it together http://t.co/Q3NZw7j0

  23. Anthony Adshead

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  26. Glynnbo

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  27. Gretta Marshall

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  28. Miles Douglas

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  29. Rutland&MeltonLabour

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