cutting consequences

Interesting that welfare cuts, local authority loans and tax credit cuts are having a negative effect…..

Tax credit cut will hit ethnic minorities

An FT analysis of official data shows cuts to tax credits in Wednesday’s Budget are likely to hit Britain’s ethnic minority communities disproportionately hard. Recent government data show that while tax credits constitute 2% of weekly household income for white households, this rises to 6% for black households and 10% for households of Pakistani or Bangladeshi origin. Elsewhere, Polly Toynbee disputes suggestions that raising wages can fill the gap left by planned cuts. She points out that low-paid workers would need a 26% pay rise to compensate for loss of tax credits.

Banks make £1bn from local authority loans

The Channel 4 documentary Dispatches: How Councils Blow Your Millions, which aired last night, claims banks have made more than £1bn in upfront profits on local authority loans. The programme has established that at least 12 councils have the most expensive Lender Option Borrower Option (LOBO) loans, which are tied to complex interest rate derivatives set up by the banks.

Bristol families facing homelessness treble in one year

The number of families facing homelessness in Bristol more than trebled in the past year, according to Bristol City Council. It said it had placed 140 families in emergency accommodation at a cost of £3.2m. Last year the figure was 40.

This blog is for UNICEF.

Thanks for reading. 

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