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Middle-income families 'relying on benefits'

Benefit-bashing Chancellor George Osbourne has left middle-income families more reliant on state support

Benefit-bashing Chancellor George Osbourne has left middle-income families more reliant on state support, Office for National Statistics (ONS) figures showed yesterday.

The middle fifth of households have been forced to claim 3 per cent more in benefits since the Tories took power in 2010.

Increases in tax credits to top up wages from low-paid jobs and housing benefit to help with soaring rents made the greatest contribution.

Tax expert Richard Murphy told the Star that the figures show Mr Osbourne had created a "genuine squeezed middle."

He said: "People simply do not have enough money to make ends meet because he's not doing anything to create real jobs which pay sufficient income for people to actually support their families."

Cash benefits accounted for 21 per cent of income for those families in 2009/10 but that reached 24 per cent last year.

In the same period the amount of family income from employment fell from 65 per cent to 62 per cent.

But Mr Murphy warned that these families face losing out further when the Chancellor delivers his autumn statement on Thursday.

"There are families in this situation that while they are making over £30,000 a year, they can be vulnerable because of the number of children they've got or where they are living and have real difficulty making ends meet.

"So much for the Tory Party's commitment to the family."

Labour also pointed out that disposable income for the average working-age household has fallen by £1,505 under Tory-led government.

Families enjoyed £27,176 of disposable income in 2009/10 but that had slumped to £25,671 last year.

Shadow Treasury minister Catherine McKinnell said: "After three damaging years of flatlining the cost-of-living crisis under this government continues as prices are still rising much faster than wages.

"That's why we need action in the Autumn Statement to tackle the rising cost of living and ensure we can earn our way to higher living standards for all and not just a few at the top."

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