You are here: Home - Saving & Banking - News -

Citizens Advice calls for 10p tax rate compensation

0
Written by:
29/04/2008

Citizens Advice has written to the Chancellor urging the Government to fully compensate everyone who is worse off financially from the removal of the 10p starting rate of Income Tax.

The charity has called for any compensation to be introduced quickly and effectively, taking into account any potential barriers such as difficult claiming procedures.

Citizens Advice stresses that any compensation package must include bringing those under 25 without children into entitlement to working tax credit (WTC). The charity is also calling for carers to qualify for WTC at 16 hours, recognising that their ability to work full time is limited and addressing the low level of benefit take up in the groups who have lost out as a result of this change – less than one in four households without children entitled to WTC actually claim it.

Katie Lane, Citizens Advice social policy officer, said: “Every year Citizens Advice bureaux provide advice on nearly 3.5 million problems relating to welfare benefit, tax credit, and debt. The effect of the removal of the 10p starting rate of Income Tax is therefore of great concern to us.

“While we welcome the Government’s recent commitment to compensate those who have lost out, it is vital that any measures can be introduced quickly, are backdated and are easy for people to receive. Any barriers, such as complex claiming procedures could cancel out any positive impact.

“Whatever package of remedies is ultimately implemented it is absolutely essential that they are accompanied by significant measures to dramatically increase take-up of means tested benefits and tax credits by families in low paid work, and to improve the standards of service provided.”

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Building societies attract record savings

Building societies’ savings influx in March reached £1.26bn, marking a 70% increase since March 2007, according to the Building Societies...

Close