Families with children will bear brunt of George Osborne's budget changes

Resolution Foundation shows struggling squeezed middle households hit harder than ministers admit

Typical families with children, who are already struggling on low to middle earnings, will see their real incomes fall by between 4% and 7% in real terms over the next year, according to new analysis obtained by the Observer .

The stark statistics reveal the extent of the pain that will be felt by those in the squeezed middle as the tax and benefit changes announced last week by the

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