Distributional analysis to accompany Budget 2015

Transcription

1 Distributional analysis to accompany Budget 2015 James Browne and William Elming

2 Change in annual net income Impact of tax and benefit reforms between May 2010 and May 2015 (excluding universal credit) ,000 1% 0% -1% -2% - 1,500-2,000-2,500-3,000-3,500 Pre-announced, per year (left axis) Budget measures, per year (left axis) Total, per year (right axis) Total as a % of net income (right axis) Poorest Richest All Income Decile Group -3% -4% -5% -6% -7%

3 Change in annual net income Impact of tax and benefit reforms up to May 2015 (excluding universal credit) 1% 0% -1% -2% -3% -4% -5% -6% -7% Reforms since May 2010 Reforms since January 2010 Poorest Richest All Income Decile Group

4 Change in net income Impact of tax and benefit reforms May 2010 May 2015 inclusive 4% 2% 0% -2% -4% -6% -8% -10% -12% -14% Working-age with children Working-age without children Pensioner households Poorest Richest All Income Decile Group

5 Change in annual net income Impact of tax and benefit reforms May 2010 May 2015 inclusive 1, ,000-2,000-3,000-4,000-5,000 Working-age with children Working-age without children Pensioner households - 6,000 Poorest Richest All Income Decile Group

6 Impact of tax and benefit reforms May 2010 May 2015 inclusive 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 -10% -8% -6% -4% -2% 0% 2% Change in net income

7 Impact of tax and benefit reforms May 2010 May 2015 inclusive 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 - 2,000-1,500-1, Change in annual net income

8 Change in yearly net income Impact of tax and benefit reforms April April 2017 inclusive, no Universal Credit Pre-announced, per year (left axis) Budget measures, per year (left axis) Total, per year (left axis) Total as a % of net income (right axis) Poorest Richest All Income Decile Group 0.6% 0.4% 0.2% 0.0% -0.2% -0.4% -0.6% -0.8% -1.0%

9 Impact of tax and benefit reforms April April 2017 inclusive, no Universal Credit 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 Budget measures Pre-announced Total -6% -5% -4% -3% -2% -1% 0% 1% 2% Change in net income

10 Impact of tax and benefit reforms April April 2017 inclusive, no Universal Credit 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 Budget measures Pre-announced Total Change in annual net income