200,000 British households to fall below poverty line by 2020

A new report suggests that up to 200,000 households with working members in Britain will push into poverty by the government’s latest welfare reforms.

The Resolution Foundation, a British think tank, published the report just a day after Prime Minister pledged an “all-out assault on poverty” and urged the government to protect the most vulnerable and lowest-paid workers.

The think tank’s findings countered not only David Cameron’s message during the Conservative Party’s annual conference but also promises made by Chancellor George Osborne.

According to the report, the number of working households in poverty will rise by 100,000 next year as a result of changes announced by Osborne in July. A further 100,000 working households would fall below the poverty line by 2020 after a second phase of cuts.

Based on the figures, the number of poor household in Britain will be around 2 million by 2020. The Resolution Foundation says even the minimum wage would not offset the losses incurred by tax credit cuts.