New analysis: what the unprecedented economic response means for families, and what the priorities for further action are resolutionfoundation.org/comment/key-ta…
A £1,000 increase in benefit levels reverses the recent four year freeze and some of the 1990s falls - now back to levels of late 90s compared to average earnings. Increases the incomes of working not just out of work families 
Increased support for renters (via Local Housing Allowance) effectively reverse the cuts since 2012. Will help families most in areas where rents have risen fastest since then. Biggest winners in and around London (and Edinburgh)
Scrapping the minimum income floor for self-employed makes a big difference if they’re in lower or middle income families, massively softening the blow of self-employment income disappearing. Here’s a case study.
The £7bn increase in benefit spending is very focused on poorer families - 59% goes to the bottom quarter of the income distribution, and it increases incomes there by 5x as much as the population as a whole. Crucially of course as unemployment rises who is lower income changes
Govt paying 80% wages of workers would cost £4.2bn in 3 months if it affects 1m workers. For families on UC some workers losing their jobs will actually see 96% of their incomes protected because benefits will also rise as wages fall
But this is a case of lots done, much more to do. Not least actually getting the retention pay scheme up and running. Here’s three areas that government should now be urgently looking at
1. The Government should extend Statutory Sick Pay to the two million employees who earn too little to be eligible for it (OR make it very clear that workers self-isolating/sick with CV can be included in the 80% retention pay scheme)
2. Many self-employed won’t currently be protected from big income falls. We need creative thinking. Options would include relaxing means tests in universal credit so the self-employed with savings can claim or raising the levels of (non-means tested) contributory benefits.
Upcoming tax payments could also be halted & more radically recent years average profits could be used as basis for 80% income protection. Remember self-employed losing work and employees losing their jobs ARE in the same boat ie relying on universal credit in many cases
3. 1.5m working families (containing over 2m children) still receive tax credits rather than UC. The government needs to scrap the 2012 cut that means a family income has to fall by at least £2,500 before their tax credits start to rise to compensate for earnings falls
We have seen bold action in recent days to share the pain of this economic crisis. But there is still more to do. Let’s get it done.
Read the full analysis from @MikeBrewerEcon, @lauracgardiner and the @resfoundation team resolutionfoundation.org/comment/key-ta…
