Northern Ireland hit by tax and benefit changes
Commissioned by the Law Centre, the Institute for Fiscal Studies Report on distributional impact of tax and benefit changes was launched at the Law Centre AGM.
New research published today by the Institute for Fiscal Studies and commissioned by Law Centre (NI) shows how tax and benefit changes will affect incomes across different parts of the UK. Northern Ireland is more badly affected than any other region of the UK save for London.
‘I welcome this research which illustrates starkly how tax and benefit changes will have a particularly devastating impact for those on lower incomes in Northern Ireland. On top of the distributional effect, there is the likelihood of a slower economic recovery, higher rates of mental and physical health problems and poorer childcare provision which will make things even tougher for people trying to get into work in Northern Ireland. We need to develop changes to social security that take account of our conditions and which will actually work in Northern Ireland.’ said Law Centre (NI) director Les Allamby.
The research looks at the changes to tax and benefits announced in the Coalition’s emergency budget in June 2010 and the Comprehensive Spending Review in October 2010 and their impact on incomes through to 2014/2015.
The impact in London is a reflection of larger numbers of very wealthy people being affected by the tax changes and the effect of Housing Benefit changes on high rents in London. Northern Ireland has fewer very wealthy people and a larger proportion of households with children and of people on Disability Living Allowance, which contributes to the negative impact on incomes.