Tax and benefit changes 'will hit families hardest'

Families struggling with financial difficulties such as a bad credit rating could be among the hardest hit by government reform to tax and benefits.

This is according to a new report published by the Institute for Fiscal Studies today (January 4th).

It found the incomes of households of parents and children will fall by 4.2 per cent in the years leading to 2015.

Contrastingly, couples without children will experience a lower decline of a 0.9 per cent loss - roughly the equivalent of £215.

Chief executive of the Family and Parenting Institute Dr Katherine Rake said: "These figures reveal the full extent to which families with children are shouldering the burden of austerity."

She also noted those who are more financially vulnerable "are bearing the brunt of the tax and benefit reforms".

Rising energy costs could be another difficult factor for those who are struggling with the increasing cost of living and MoneySupermarket.com recently warned around 40 per cent of the annual consumption of utilities takes place in the cold winter months.

Posted by Gemma Walker