Budget 2015: Impact on BME Families

The Runnymede Trust think-tank launched our research into the impact of the 2015 budget on Britain's BME citizens.

It found that four million minority ethnic people could be made worse off due to a range of budget measures that have a negative and disproportionate impact on BME people.

The report's author, Dr Omar Khan, director of the Runnymede Trust, says that even taking into account the rising national minimum wage, BME people will be left with less money, and this could increase racial inequality.

Changes to tax credits, part-time working changes and benefit caps on households with three or more children will all have a greater impact on BME families.

The story is covered in the Guardian newspaper (click here).

The report is now available to download here.

The Runnymede Trust has analysed the budget measures and has concluded:

- Black and minority ethnic (BME) people are over-represented in several categories which are negatively impacted by the 2015 summer budget

- As a result more than 1.25 million BME housholds and more than 4 million BME people could be worse off

- Inequality in the affected areas is likely to worsen for BME people, meaning the cumulative effect of the budget may become even more unfair with time

- British Bangladeshi and Pakistani households are particularly affected, with up to half of Bangladeshi households out by £1,000 or more

-  Black African households will also be worse off, but even Indian and Chinese households are more likely to be affected because they have higher rates of low income households

- The Government may point to initiatives to address BME inequality, but there is limited evidence they have been effective

- The Government urgently need to carry out a formal audit, or a full Equality Impact Assessment on the budget, including its effect on BME people

Dr Khan said:

- The budget directly and indirectly impacts negatively on BME people because they are over-represented in the categories that will be hardest hit by George Osborne's measures.

- Black and minority ethnic households are more likely to be living in poverty already, so this is likely to make racial inequality even worse.

- The Treasury needs to urgently carry out a full equalities impact assessment on the budget and ensure that future budgets are written with the aim of not adversely affecting BME people.