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<p>Since 2010 the Government has regularly published cumulative analysis of the impacts
of its tax, welfare and public spending policies on households. The most recent assessment
was published at Budget 2021. It showed that, in 2021/22, the poorest 60% of households
will receive more in public spending than they contribute in tax. And households in
the lowest income decile will receive more than £4 in public spending for every £1
they pay in tax on average.</p><p> </p><p>This cumulative distributional analysis
(by HM Treasury) is the most comprehensive available, covering not only the effects
of direct cash transfers between households and government, but also the effects of
frontline public service provision. Welfare spending is not the only way to help families
with children; further support, including health spending, employment support, and
investment in infrastructure are important enablers to the removal of barriers to
participation.</p><p> </p><p>It would be very challenging to produce analysis, of
the same high quality, across other characteristics such as disability and ethnicity.
Many benefits and services are paid or provided to households rather than individuals.
Modelling would have to make strong assumptions about how income (and the benefits
of wider service provision) is shared within households and the analysis results would
be heavily dependent on these specific assumptions.</p><p> </p><p>Nonetheless, the
Treasury, along with other relevant departments, carefully considers the impact of
its decisions on those sharing protected characteristics, such as disability and ethnicity,
including at Budgets and other fiscal events, in line with both its legal obligations
and with its strong commitment to promoting fairness.</p>
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