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Two thirds of welfare cuts will fall on working families

 1 November 2010

Nearly two thirds of the £15.9 billion of welfare and benefit cuts announced in the emergency budget and spending review will hit working families, undermining government claims that they are 'making work pay', the TUC reveals today.

TUC analysis of welfare changes for working age people shows that working households will suffer a loss of around £9.4 billion - nearly twice the level of losses for non-working households (£5.9 billion).

The analysis, which breaks down the welfare cuts (as well as welfare increases such as child tax credits and discretionary housing benefit payments) by working and non-working household, shows that 69 per cent of the policies announced in the spending review hit working households, at a cost of £4.5 billion.

The majority of the working age welfare cuts relate to benefits for children so working families will bear the brunt of the cuts, says the TUC.

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