It now seems to have dawned on just about everyone that, if the government really does cut £12 billion from the social security budget, most of the pain will be felt by those in work. There have been some interesting reactions to this from right-of-centre think-tanks. The Institute of Economic Affairs said the cuts would be “extremely unfair on the working-age population” while the Adam Smith Institute warned that cutting tax credits would remove incentives to work and make the working poor worse off. The Centre for Policy Studies argued for an increase in the minimum wage to reduce the cost of tax credits.
It’s not just those on the left who think cutting in-work benefits is a really bad idea. In fact, it’s quite difficult to find anyone outside the government and its media cheerleaders who thinks this will do anything other than cause a lot of misery for a lot of people.
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