Spending cuts ‘hit families with children worst’

Families with children are at greatest risk from cuts in public services, according to a trade union report that looks at the potential impact of cuts (other than those to benefits and tax credits) on different family and household types. Families with children fare much worse than households without them, whether they are in or out of employment.

The analysis is based  on a model that allocates total government spending to households on the basis of which households receive and use particular services.

Key points

  • Cumulative cash losses per household up to 2017-18 range from £1,897 to £10,670, and from 4.5 to 33.6 per cent relative to annual household income.
  • The worst hit group in percentage terms is no-earner couples with children, who are set to lose a cumulative £10,497 – equivalent to over a third of annual income.
  • The next worst hit is lone parents out of work, who will lose £9,535, or 32.8 per cent of income.
  • The group that suffers least is two-earner couples without children: they lose just £2,468, or 4.5 per cent of income.
  • Families with children are particularly affected by cuts in spending on education and social care. Health spending cuts have the greatest financial impact for pensioner households.
  • The poorest 10 per cent of households are set to lose services equivalent to over 38 per cent of their annual income by 2017-18, compared with losses of just 3 per cent for those in the richest decile.

SourceFamilies First: Who Loses Most from Cuts in Public Services, Trades Union Congress
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