Tom Blenkinsop, Labour MP for Middlesbrough South and East Cleveland, has today (7th April 2014) claimed that Households will be £974 a year worse off by the time of the next general election because of tax and benefit changes since 2010,
Labour calculations, based on IFS figures and analysis by the House of Commons Library, show that households will be around £950 a year worse off at the start of the new tax year, taking into account all changes since 2010 such as increases to the income tax personal allowance, as well as the rise in VAT and cuts to tax credits and child benefit..
“These new figures are just the tip of the iceberg. The strain household finances are under due to the cost-of-living crisis is unprecedented. They are in addition to the impact of wages falling in real terms, which have left working people on average £1,600 a year worse off since 2010 and, in my constituency, wages have been hit to the tune of £116.93 per week.
“David Cameron is trying to tell working people they are better off, but he’s not fooling anybody. One in four women does not even earn enough to benefit from the latest rise in the income tax personal allowance. While millions have seen their taxes go up, millionaires have been given a huge tax cut by this government.
“So whatever out of touch claims David Cameron and George Osborne try to make, these independent figures are clear: hard working people are worse off under the Tories. Labour has a clear plan to earn our way to higher living standards and deal with the cost-of-living crisis: freezing energy bills; get young people into work with a compulsory jobs guarantee; expand free childcare and cut business rates for small firms.”