LONDON (AA) – A British think-tank warned on Thursday that the U.K’s possible exit from the European Union would hit low-income families especially hard due to lower welfare payments.
They are “the most vulnerable, economically, so the impacts whether good or bad are likely to be the most extremely felt for those people,” Dr. Angus Armstrong, macroeconomics chief for the National Institute of Social and Economic Research (NIESR), told a press conference in London.
The NIESR assessed the possible impact of the UK leaving the EU on benefit and tax credit receipts of low-income households using detailed fiscal and population data.
According to the think-tank, in case of a Brexit, a low-income single parent with two children would lose £5,542 ($8,028) in annual benefits in 2020.
Also, a low-income family with no children would receive £1,861 less in tax credits and benefits.
NIESR also estimated that the country would bear around a £44 billion budget deficit in 2020.
Britain will hold a nationwide referendum on June 23 on whether the U.K should leave or stay in the EU.