According to the Resolution Foundation think-tank some middle income families could be up to £2800 worse off after tax cuts/changes take effect.

The report found that 700,000 middle income earners will be paying the top rate of tax as a result of changes to the budget.

A couple with two children and a household income of £42,000 stands to lose £2,800.

Those earning between £15,000 and £58,000 will lose an average of £435 a year from 2012 as a result of cuts to the Child Tax Credit. This figure rises to an average of £600 for families in London. In some instances families could lose as much as £1,300 a year.