Families will be '£580 worse off' following tax reforms

UK families will be significantly worse off once planned tax and benefit reforms come into force, according to new research.

In a letter to the shadow Treasury secretary Rachel Reeves, the Institute for Fiscal Studies (IFS) revealed that a family with at least one child would lose out by £580.03 from April.

The financial watchdog claimed that around £32 of that is due to changes to working and child tax credit changes announced in the autumn statement, which would benefit childless families and pensioners.

Labour leader Ed Miliband cited the findings in a speech at the Welsh Labour conference in Cardiff.

He said: "What is their answer to the crisis of living standards? Cutting taxes for the banks while they raise taxes on ordinary families, higher VAT, cuts to tax credits.

"As the IFS have confirmed, this April the government is hitting an average family with children for £580. Choosing to squeeze the squeezed middle yet again."