Rugby’s food banks to face greater pressure

The poorest lose out so that richest can pass on £1 million houses without tax.

There was a lot in the July budget.

Here is a look at some of the changes to Britain's welfare system. I am taking my figures from the Institute of Fiscal Studies analysis of the budget - see http://www.ifs.org.uk/uploads/publications/budgets/Budgets%202015/Summer/Hood_distributional_analysis.pdf

The Conservatives are planning to stop adjusting benefits for the effects of price increases. In Britain 13 million families are expected to lose £260 a year on average as a result of this change. Seven million of these families have at least one person in work but currently have their pay "topped up" to meet their needs.

The "top-up" comes in the form of a tax credit

Under the old rules people who had been out of work were encouraged to get back into work by earning up to £124 a week before their tax credits started to be reduced but under the new rules this falls to about £74 a week. The Institute for Fiscal Studies estimate that around three million families will be about £1,000 a year worse off as a result of this change. These are families with at least one person in work - but not paid very much.

The Institute for Fiscal Studies reckons this will discourage those who are out of work getting jobs.

As an average the Institute reckons the poorest people in Britain will be about £16 a week worse off. So there will definitely be more demand for Rugby's food banks.

However if you own a house worth a million pounds you will be able to avoid paying on tax on it when you die.

We know where conservative priorities lie.