Britain's poorest are paying a higher share of the total tax burden but getting a lower proportion of Government benefits than when Labour came to power, according to a study.
The worst-off fifth of households contributed 6.8% of the total tax take in 1996-7, but by 2004-5 that had risen to 6.9%, the Centre for Policy Studies found. Their share of benefits also dropped from 28.1% to 27.1% over the same period.
Overall, they would have been £531 a year better off if the systems had remained the way they were before Gordon Brown became Chancellor.
Researchers from the right-leaning think tank divided the population into five groups based on household income, and compared how they would have fared in the different years.
They found changes in tax and benefits had a negative financial impact on three of the classes. Apart from these on the lowest income, the second-poorest would have been £427 better off in 1996-7, and the richest would have gained £465.
The winners have apparently been middle income households - £613 wealthier in 2004-5 - and the second-richest - up by £847.
The study's lead author Charlie Elphicke said: "Almost five million households have an average pre-tax-and-benefit income of just £4,280.
"These households are now paying over £1,000 a year in income and council taxes. The impact of the Government's policies resembles those of the Sheriff of Nottingham, not Robin Hood."
Liberal Democrat economic spokesman Vince Cable said the report clearly highlighted "the source of sustained inequality in Britain".
"Labour have done nothing to close the huge gap between the richest and poorest in this country." Lib Dem tax proposals would lift two million of the lowest-paid people out of income tax altogether, he added.
