Budget: average family £400 worse off

George Osborne"This is not a tax raising budget but nor is it a budget give away," said The Chancellor, George Osborne, as he snuck through measures to make the average family nearly £400 out of pocket. The Red Book – the 100-page tome with all the details – says everyone in the country is worse off as a result of this budget.


Replay his speech and you won't actually hear Gorgeous George say it, but there is a graph on page 76, at the end of a section called "Impact on households" that shows how much worse off everyone really is.

The section begins: "The Government has taken steps to increase transparency and enable the effective scrutiny of policy making." But, you'd need to read through more than 1,300 words that never mention how much worse off you will be before you find the graph.

And even then the actual figures are not clear. The graph shows how the budget affects different income groups – divided in the ten, from the poorest to the richest families. The worst hit are those in the top 10%. They are about £1,500 a year worse off, or 2% of their income.

Least affected

The least affected are not the poorest – no, they are worse off by about £175. In fact, apart from the richest 10% they are worst affected in terms of percentage, by about 1.5%. The next poorest 10% of the country are least affected, being just £100 worse off.

The average household is close to £400 worse off. Nine of the ten sections of the population are worse off from tax but have some of those losses offset by benefits. Only the richest lose benefits too.

The treasury have, so far, been unable to provide the exact figures that were used to compile this table.

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