At a time of very significant public sector spending cuts it is interesting to note that research undertaken by the Institute for Fiscal Studies (IFS) shows that these cuts are falling more heavily on those with low incomes than other groups. The IFS is Britain's leading independent institute on public finances and tax and has no party political affiliation. Further details can be found at http://www.ifs.org.uk

Another recent report entitled ‘Keeping the Plates Spinning' (http://consumerfocus.org.uk) on payday lending illustrates that those with few or no alternatives always pay more interest than those with greater means. Payday lending comprises of a small loan (£100 - £1,000) advanced until the next payday (usually a month). Charges are fixed at a fee per £100 and loans can generally be extended each month by paying this fee or can be repaid in full. According to Consumer Focus, which commissioned the report, the number of people using payday loans has quadrupled in the last four years to 1.2 million with £1 billion lent in 2009 alone by around seven major companies. It noted average annual percentage rates of 2,500%.

It is disturbing to know that we live in a society where the poorer you are the more you pay for goods and services. Of course this means that the wealthy pay less. These disparities cover the cost of credit, banking, energy bills, telephone and many other areas of life.

The other concern with regard to cuts in public services is that it is the most disadvantaged areas and communities which rely on the resources and services generated by public sector investment. These are areas with a relatively small private sector. Any recent prosperity and most job creation have come from increases in public expenditure. It is optimistic in the extreme to think that places such as Liverpool and Middlesbrough will be able to replace lost public sector funded jobs with new employment opportunities in the private sector.

The Pope's recent visit to our country reminded us that our faith teaches us to value every person regardless of their status or material wealth. Recent findings show that the gap between rich and poor is wider than ever. Some people are paying extortionate rates of interest for small loans and suffering real deprivation because of cuts. In the face of such contradiction we all have a responsibility to do what we can to build a society in which every person matters in reality not just in theory.

An important part of the MCW's mission is to discern the signs of the times, reflect on them in the light of Gospel values and challenge both our members and all people and organisations of good will to engage in relevant actions to make a difference in order to promote social justice. The need for such concern and action is now more important than ever.