Younger workers clobbered by budget

4.32.42pm UTC (GMT +0000) Fri 23rd Mar 2007

Analysis from the IFS shows that single people with no children, earning less than £18,500 per annum are the big losers from Wednesday's Budget. Local Liberal Democrat MP, Dr Evan Harris, said:

"This shows the real impact of Brown's Budget. He is clobbering those on low pay who are often just starting out in working life.

"It is totally unjustifiable to hit this group of people, who are already having difficulty coping with rising council tax, student loan repayments and who can't get on the housing ladder because property prices are so high.

"This is a slap in the face to a lot of young people in Oxford beginning their careers; they have studied hard and now can't make ends meet."

Those under 25 will be hit especially hard, as they are not able to claim Working Tax Credits. This means single under 25s with no children lose out if their income is less than £18,500.