The Budget imposed a 10% pay cut on those earning £12,000 a year

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This graph from the IFS on the impact of the budget by income decile is worth repeating:

Screen Shot 2015-07-10 at 07.03.14

 

I repeat it for a reason. Note that the second income decile is hardest hit, losing more than £1,200 a year.

That decile, according to most recent government data has income varying between £11,100 and £13,100 a year.

In other words, George Osborne imposed a 10% net pay cut on some of the hardest up people in the country in this budget.

No wonder that the Pope expects change to come from the demands of those least well off. Could you live with losing five weeks income when you were already at your financial limits? I doubt it. So why do we expect this whole group to do so?


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