Think-tank the Resolution Foundation published 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 £1,000 a year worse off.
On the proposals for a National Living Wage, the think-tank estimates that the current Living Wage would be need to rise to £10 by 2020 – more than the £9 announced by George Osborne.
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, Kevin Stewart, who sits on the Scottish Parliament’s Welfare Reform Committee, said:
“After five years of hammering the lowest income families, George Osborne has today made clear that he intends to plough on with more deeply unfair cuts.
“The plans to introduce a National Living Wage are a con-trick that will actually result in slower growth in wages – indeed Mr Osborne has failed to promise to meet the current Living Wage of £7.85 in the first instance, and under 25s will receive no increase at all despite the fact they face the brunt of other cuts.
“And while he says that the National Living Wage will be £9 by 2020, this analysis from the Resolution Foundation finds it will need to be at least £10.
“The Tories make no attempt to hide the fact they can’t be trusted on welfare. It’s time to strengthen the Scotland Bill to ensure that the powers to support and empower the least well off and most vulnerable people in society are in Scotland’s hands where they belong.”
The report is here:
