Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what estimate he has made of the number of people who will experience a net loss in income as a result of the changes to in-work benefits and the minimum wage announced in the Summer Budget 2015.
As a result of the introduction of the National Living Wage, 2.75m workers are expected to benefit directly, and up to 6m could see their pay rise as a result of a ripple effect up the earnings distribution.
Getting the public finances under control will mean that some families receive less in benefits, but overall, 8 out of 10 working households will be better off in 2017-18 as a result of the Summer Budget increase to the income tax personal allowance, welfare changes, and introduction of the National Living Wage. This translates to 12.5 million working households better off.