It argues that policies such as housing benefit cuts hit low-income households hardest and that with more than half of all poor children living in working households, child poverty is likely to increase among working families.
The research follows a TUC study last week that found departmental spending cuts will hit the poorest households 15 times harder than the richest 10 per cent.
TUC general secretary Brendan Barber said: "Ministers say their welfare and benefit cuts are fair and justified because they will make work pay.
"Polls show they have already lost the fairness argument. Now we show that it is working families – both the poor and the squeezed middle – that are the big losers from welfare cuts, not the alleged work-shy scroungers that the government claims to target.
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