Table 1

Estimated percentage change of tax and welfare reforms (from 2010/2011 to 2021/2022) on equivalised net household income (before housing costs) by SIMD 2016 quintile

SIMD 2016 quintile
1 (most deprived)2345 (least deprived)
Tax/welfare reform
Benefits and tax credits*−6.43−5.42−4.82−4.04−3.10
Universal Credit (UC)†−0.16−0.18−0.29−0.24−0.20
Income Tax and NICs1.581.521.511.351.20
Gross incomes‡2.051.821.721.501.25
Indirect taxes−1.47−1.35−1.28−1.16−1.04
All tax/welfare reforms−4.43−3.60−3.16−2.59−1.88
Specific policy reforms
DLA-PIP transfer§−0.14−0.14−0.13−0.12−0.10
Post-2015 freeze¶−0.81−0.66−0.57−0.47−0.35
Two child limit**−0.35−0.28−0.24−0.19−0.13
UC work allowances††−0.57−0.47−0.40−0.33−0.24
Scotland-specific reforms††−0.29−0.37−0.41−0.51−0.62
  • *The impacts of all reforms to benefits and tax credits with the exception of Universal Credit.

  • †The additional impact of Universal Credit on incomes, after all other reforms to benefits and tax credits.

  • ‡Changes to gross incomes as a result of real-terms increases in statutory minimum wages.

  • §The replacement of Disability Living Allowance (DLA) with Personal Independence Payment (PIP).

  • ¶The four-year freeze in uprating of benefits, tax credits and Universal Credit for working-age individuals and families from 2016/2017 to 2020/2021.

  • **The two-child limit on Housing Benefit, tax credits and Universal Credit for children born after April 2017.

  • ††Reductions in the tax-free work allowances for Universal Credit.

  • ‡‡Scotland-specific reforms: making income tax slightly more progressive, a new Best Start Grant, and an increase to Carer’s Allowance.

  • NIC, National Insurance Contributions.