Cash cut for many Smoke and mirrors in Budget ’15 Image © Jess Hurd/reportdigital.co.uk 10-13_editARENA_AUTUMN2015_Arena_A5 10/08/2015 11:34 Page 2 Chancellor George Osborne tried to make out his emergency Budget was for working people, don’t believe a word... C onservative claims that it is now the Party of working people have been demolished by independent analysis of the last Budget that shows millions of families on low pay will be much worse off in the next few years. Figures from the National Institute of Economic and Social Research (NIESR) reveal the chancellor’s introduction of a national living wage for over 25 year- olds will fail to make up for the massive loss of tax credits now facing working families. Low paid in Tory sights The NIESR say the main impact of the Budget will intensify the disincentives to work for all tax credit claimants earning more than the new threshold of £3,850, (except for those earning in the very narrow range 10 arena between £10,600 and £11,000). It also identified the types of families who will be worse off in 2017/18 after the changes. Its conclusions make grim reading for the vast majority of families who will be worse off by hundreds or possibly thousands of pounds a year. The NIESR make it clear these families, around three million in total, will lose more in tax credits than they will gain from the changes to income tax and the new so-called ‘living wage’. Only childless and non-disabled individuals currently working 40 hours on the National Minimum Wage (NMW) will be better off. The Living Wage con While the chancellor labelled his introduction of a £7.20 hourly rate for over f Millions o ill be workers w rse off much wo