Thousands of low to middle income families in Neath will be even worse off in the future because of the Government’s continuing economic mismanagement Peter Hain has warned.
Criticising the Government’s handling of the economy the Neath MP said: “The Prime Minister and Chancellor are on the side of the millionaires not Neath’s many thousands ‘strivers’.”
Projections from the Resolution Foundation think-tank showed that those families worst hit by the government’s benefits cuts will not see their living standards return to pre-recession levels until 2023; with real earnings set to continue falling into 2014 according to the government’s forecaster, the Office for Budget Responsibility.
Mr Hain said, “If the Government is on the side of the ‘strivers’ then why is the Prime Minister giving millionaires a tax cut of £100k a year on the same day the punitive bedroom tax begins? Quite simply he is helping out the millionaires while the ‘strivers’, the nurses, the police, the teachers, engineers and electricians, people who work hard and play by the rules are being clobbered by the cuts.
“These predictions don’t even take into account the poorest 10% of households. Once again it seems that those working hard in low-paid jobs are getting all the bad news. The Resolution Foundation cites growth as the only way out, but the growth needed would be 3.3% a year with no obvious hope from disastrous government austerity policy that destroys hope and growth.’