Eighteen million families in the UK will be worse off by an average of more than 150 pounds a year due to tax and benefit changes unless the government introduces further reforms, a new report says.
The Institute for Fiscal Studies research said, in order to stop families being worse off, the government would need to find money to "extend last week's one-off income tax cut and continue topping up the winter fuel allowance".
It added that the personal income tax allowance on 13 May meant the government was giving away £5.5 billion this year through various income tax, National Insurance, tax credit and benefit changes announced in the 2007 Budget and since then.
Around 21.3 million will be better off this year than they would have been without these changes.
But the report said 900,000 families will still be worse off this year as a result of reforms in the 2007 Budget and subsequently.
It also said around 18 million families would be worse off in 2010-11 than they are in 2008-09 as a result of these reforms, unless there are further policy changes.
Robert Chote, director of the IFS, said: "By announcing a big ‘one-off' increase in the personal tax allowance, Alistair Darling has not only created millions of winners this year - he has created millions of potential losers next year."
It added that the personal income tax allowance on 13 May meant the government was giving away £5.5 billion this year through various income tax, National Insurance, tax credit and benefit changes announced in the 2007 Budget and since then.
Around 21.3 million will be better off this year than they would have been without these changes.
But the report said 900,000 families will still be worse off this year as a result of reforms in the 2007 Budget and subsequently.
It also said around 18 million families would be worse off in 2010-11 than they are in 2008-09 as a result of these reforms, unless there are further policy changes.
Robert Chote, director of the IFS, said: "By announcing a big ‘one-off' increase in the personal tax allowance, Alistair Darling has not only created millions of winners this year - he has created millions of potential losers next year."
