The IFS has a press release issued today analysing the short- and long-term effects of the recent tax changes, and this includes the following section:
"The 0.9 million families who are still worse off overall this year as a result of the reforms in Budget 2007 and subsequently include:
. 500,000 childless single adults under 25 (almost all living in a household with other adults);
. 140,000 childless couples where at least one is aged 25 to 55;
. 115,000 childless single adults aged 25 to 55.
"The losing families have an average income after taxes and benefits of 11,800. More than two-thirds are in the poorest third of the population. These families lose around 83 a year on average, with the poorer among them losing a larger proportion of their income than the richer ones."
Can someone explain why the upper age of 55 is significant?
Matti