Cathy Jamieson MP, Labour’s Shadow Treasury Minister, responding to the IFS’s report on the government’s tax and benefit changes, said:

“This report shows that tax and benefit changes under this government have left households £1,127 a year worse off on average. Families with children have been hit hardest of all by David Cameron’s choices - a clear betrayal of his promise to lead the most family-friendly government ever.

“For all the government’s claims, this report shows that they have raised tax by over £13.5 billion a year. And for millions of working people the rise in VAT and cuts to things like tax credits have more than offset changes to the personal allowance.

“The Tories are now promising to cut tax credits again for millions of working families and refusing to rule out another VAT rise to pay for their unfunded promises. It’s clear working people can’t afford five more years of this government.   

“Labour’s economic plan will ensure we earn our way to rising living standard for all and balance the books in a fairer way. We will reverse this government’s £3 billion a year tax cut for the top one per cent of earners and help 24 million working people with a lower 10p starting rate of tax.”