Tax up and benefits down for poor

The poorest households are paying a higher share of taxes and receiving a lower share of benefits than in 1997, a right-wing think-tank says today.

The Centre for Policy Studies said the poorest fifth of households would have been on average £531 a year better off in 2004-5 if they were paying the same share of tax and receiving the same share of benefits as in 1996-7.

In a report, the centre said the second and third richest fifth of households were paying a lower share of tax and receiving a greater share of benefits.