Additional distributional analysis
James Browne and Andrew Hood
7th December 2015
© Institute for Fiscal Studies
Short-run impact of tax and benefit changes
Changes in April 2016 only
1.0%
Change in net income
0.5%
0.0%
-0.5%
-1.0%
Pre-Autumn Statement
-1.5%
Post-Autumn Statement
-2.0%
Gains from National Living Wage
-2.5%
Poorest 2
3
4
5
6
7
Income Decile Group
Assumes full take-up of means-tested benefits and tax credits.
© Institute for Fiscal Studies
8
9
Richest
All
Long-run impact of tax and benefit changes
All changes introduced April 2015-April 2019 fully in place
2%
1%
Change in net income
0%
-1%
-2%
-3%
-4%
-5%
Pre-Autumn Statement
-6%
Post-Autumn Statement
-7%
Gains from National Living Wage
-8%
-9%
Poorest
2
3
4
5
6
7
Income Decile Group
Assumes full take-up of means-tested benefits and tax credits.
© Institute for Fiscal Studies
8
9
Richest
All
Short-run impact of tax and benefit changes
Changes in April 2016 only
£300
Change in annual net income
£200
£100
£0
-£100
Pre-Autumn Statement
-£200
Post-Autumn Statement
-£300
Average gain from National Living Wage
-£400
Poorest 2
3
4
5
6
7
Income Decile Group
Assumes full take-up of means-tested benefits and tax credits.
© Institute for Fiscal Studies
8
9
Richest
All
Long-run impact of tax and benefit changes
All changes introduced May 2015-April 2019 fully in place
£400
£200
Change in annual net income
£0
-£200
-£400
-£600
-£800
Pre-Autumn Statement
-£1,000
Post-Autumn Statement
-£1,200
Average gain from National Living Wage
-£1,400
-£1,600
Poorest 2
3
4
5
6
7
Income Decile Group
Assumes full take-up of means-tested benefits and tax credits.
© Institute for Fiscal Studies
8
9
Richest
All
Long-run impact of tax and benefit changes
All changes introduced May 2015-April 2019 fully in place
4%
2%
Change in net income
0%
-2%
-4%
-6%
Working-age with children
-8%
Working-age without children
-10%
Pensioner households
-12%
-14%
Poorest
2
3
4
5
6
7
Income Decile Group
Assumes full take-up of means-tested benefits and tax credits.
© Institute for Fiscal Studies
8
9
Richest
All
Long-run impact of tax and benefit changes
All changes introduced May 2015-April 2019 fully in place
£500
Change in annual net income
£0
-£500
-£1,000
-£1,500
Working-age with children
-£2,000
Working-age without children
-£2,500
Pensioner households
-£3,000
Poorest 2
3
4
5
6
7
Income Decile Group
Assumes full take-up of means-tested benefits and tax credits.
© Institute for Fiscal Studies
8
9
Richest
All
Long-run impact of tax and benefit changes
All changes introduced May 2015-April 2019 fully in place
Single, no work
Single, in work
Lone parent, no work
Lone parent, in work
Couple, no children, no work
Couple with children, no work
Couple, no children, one earner
Couple with children, one earner
Couple, no children, two earners
Couple with children, two earners
Single pensioner
Couple pensioner
Multi-family household, no children
Multi-family household with children
All
-20%
-15%
Assumes full take-up of means-tested benefits and tax credits.
© Institute for Fiscal Studies
-10%
-5%
Change in net income
0%
5%
Long-run impact of tax and benefit changes
All changes introduced May 2015-April 2019 fully in place
Single, no work
Single, in work
Lone parent, no work
Lone parent, in work
Couple, no children, no work
Couple with children, no work
Couple, no children, one earner
Couple with children, one earner
Couple, no children, two earners
Couple with children, two earners
Single pensioner
Couple pensioner
Multi-family household, no children
Multi-family household with children
All
-£4,000
-£3,000
Assumes full take-up of means-tested benefits and tax credits.
© Institute for Fiscal Studies
-£2,000 -£1,000
Change in net income
£0
£1,000