BBC News - 25 August 2010 Last updated at 04:58
The coalition government's first Budget has hit the poorest families hardest, a leading economic think tank has said.The Institute for Fiscal Studies (IFS) said the measures announced in the Budget in June were "regressive".
Its analysis suggests that low income families with children are set to lose the most as a percentage of net income due to benefit cuts announced in the Budget.
The Treasury said it did not accept the "selective" findings of the IFS.
The IFS had already challenged the government's claim that the Budget was "progressive".
Its report concluded: "Once all of the benefit cuts are considered, the tax and benefit changes announced in the emergency Budget are clearly regressive as, on average, they hit the poorest households more than those in the upper middle of the income distribution in cash, let alone percentage, terms."
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