James Brokenshire has welcomed the start of the new financial year and the increase in the Personal Tax Allowance to £11,500. This will mean that a typical basic rate taxpayer will pay about £1000 less in tax than in 2010 and, alongside the measures taking to boost earnings for those on the lowest incomes and to provide additional free childcare, demonstrates the Government’s commitment to helping working people.
Since 2010 over 41,500 people have benefited from changes to the personal tax allowances in Old Bexley & Sidcup alone. These and other changes have meant that since 2010, 30 million people have had their income tax cut, with the lowest paid being taken out of paying income tax altogether.
With an additional 2.8 million people in work now than seven years ago, the boost in the National Living Wage to £7.50 an hour will have a significant effect on earnings, with a full time worker on the NLW gaining an income boost of £500 a year.
In addition, the roll out of tax-free childcare will help those families with children with the often high costs associated with finding childcare places that enable them to get back to work.
Commenting, James said:
“The commencement of the new tax year shows further incremental changes to the Personal Tax Allowance and the National Living Wage. These are policies that are providing real and tangible improvements for working people up and down the country and are a key part of this Government’s aims to support those that are working hard but just about managing.”
“With more people in work than ever before and unemployment at its lowest in twelve years, a lot has been achieved. However, there is still more to do and these changes are helping to put working people at the very heart of the Government’s plans to build a stronger and fairer Britain that works for everyone.”