A STUDY by academics from the University of York and two other universities has found that the poorest in society have been worst affected by the Government's tax and benefits changes.

The report found that the Government's intentions that the rich should contribute proportionately more to repairing the nation's finances "have not been realised" and predicted poverty will increase in future years.

The academics, who also work at the London School of Economics and the University of Manchester, accepted that in May 2010 the coalition faced major social policy challenges: a very high debt and current budget deficit, a recession and some substantial unresolved challenges including the rapidly growing numbers of older people.

The study said the Government had pushed ahead with major reforms towards its goals of a "smaller state and a stronger society, lowering public spending in the long run, but savings from a squeeze on welfare payments had been cancelled out by tax cuts for wealthier households.

"The effects of the coalition's reforms were, in the main, the opposite of what they claimed - on average the poorer groups paid more than the richer ones as a percentage of their income."

The poorest twentieth of the population lost nearly 3 per cent of their incomes on average, and the next five-twentieths lost nearly 2 per cent, said the report.