Labour Shadow Chancellor John McDonnell said the IFS analysis showed the Tories posed a ‘clear threat’ to working people’s living standards.
Hated Tory benefits cuts are costing nearly three million working households £2500 a year on average, a study has found.
Analysis by the Institute of Fiscal Studies shows that big benefit cuts in the pipeline combined with rising inflation will “significantly reduce” the incomes of some of the country’s poorest families.
The economic think tank said a combination of a freeze in benefit rates, cuts to tax credits and the shift to Universal Credit would mean “large losses” for low-income households.
Labour Shadow Chancellor John McDonnell said the IFS analysis showed the Tories posed a “clear threat” to working people’s living standards.
The Lib Dems said the “Brexit squeeze will hit people in the pocket across the country, with the poorest
families hit hardest.”
The report said: “While cuts to benefits have been small as of yet, Government plans for cuts would significantly reduce the incomes of low-income, working-age households, particularly those with children.
“The most important changes are the cash freeze in most benefit rates, cuts to child tax credit and the rollout of the less generous Universal Credit.
“If these planned cuts were fully in place now, nearly three million working households with children on tax credits would be an average of £2500 a year worse off, with larger families losing more.
“The one million families with children and nobody in paid work would be £3000 a year worse off on average.”
But the IFS emphasised that many of the changes would not result in an immediate loss of income because of protection for existing claimants.
People making new claims would be affected as would existing recipients by the continued freeze in benefit rates as inflation rises.