The Women’s Budget Group (WBG) projects that the living standards of the poorest women in the UK will have fallen by 21% between 2010 and 2027/28 unless public spending increases. The analysis includes changes to welfare and declining public services since the Conservative-led coalition came to power in 2010. By 2027/28, the average woman is predicted to be 9.4% worse off, equating to £3,162 annually, while the average man will have seen a 5.8% decline, or £2,395 annually.
The WBG is urging the Government to increase spending on welfare and public services, including scrapping the two-child limit and the benefits cap. They propose funding these changes through “fairer taxes,” such as equalising capital gains and income tax and introducing a wealth tax.
Frozen working-age benefits have significantly contributed to the erosion of living standards since 2010, disproportionately affecting lone parents. While Labour leader Keir Starmer has promised to avoid austerity, Shadow Chancellor Rachel Reeves has highlighted a £22 billion shortfall in public finances inherited from the previous Conservative Government.
Though Labour has ruled out major tax increases, the Chancellor will present her spending plans on 30 October, followed by a three-year spending review in the spring. Expectations are that a shift in how public debt is measured will allow more investment within existing fiscal rules.
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