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Families with young children will be 'worse off by 2016'

A new study claims poorer families with children will be the worst affected by the government's tax and benefit changes.

The research by the Institute for Fiscal Studies claims the average income of households with children will drop by 4.2% in the next five years, which is the equivalent of £1,250 a year.

The government says it is taking "practical steps" to help, such as cutting fuel duty and income tax.

Dr Katherine Rake, the chief executive of the Family and Parenting Institute told Radio 5 live Wake Up To Money what is making families with young children worse off.

Wake Up To Money broadcasts weekdays 0530 to 0600 on Radio 5 live.

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