The current cost of living is pushing more people into poverty, with almost 68% of low income...
Universal credit
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21/03/2012
The impact of the Budget on low income households
The Chancellor’s annual budget statement contained a number of measures, many of which would affect the living standards of those on the lowest incomes. The key announcements contained in the Budget Report 2012 are as follows:
Tax changes
The personal allowance for Income Tax will increase by £1,100 in 2013/14, with some of this increase passed on to higher rate tax payers. The higher personal allowances for those over 65 are to be frozen and then phased out. The top rate of income tax is to be cut to 45p from 2013/14 and some tax loopholes closed. Analysis of the budget (by the IFS and Resolution Foundation – see below) shows that maintaining tax credit levels is more effective at helping those on lowest incomes than raising the tax threshold.
Child Benefit
Category: News stories -
13/03/2012
Welfare reforms could push 250,000 children deeper into poverty
The government’s new Universal Credit will hit poorer working mums the hardest, according to a report by the charity Save the Children. The report, Ending Child Poverty: Ensuring Universal Credit Supports Working Mums, argues that the potential impact of the new welfare system, which is due to replace tax credits and most benefits from 2013, risks making life harder for some families.
It identifies three main areas of concern:
insufficient earnings disregards for working mothers lack of support for childcare costs Universal Credit payments will be withdrawn too quickly.Without changes in these areas, it argues, the scheme’s aims of making work pay by supporting parents into work and of reducing child poverty could be undermined.
Category: News stories
