Southport Reporter (R) Bourder
Southport & Mersey Reporter - Mobile

Click on here to go to latest edition's main page.

  Search Edition Archive  

Visit our online shop...

   

Click on to go to our hub website.

Latest Edition   Archive   Shop   Email   Mersey Reporter
Please support our advertiser below...

For more recommended businesses click on here...

Weekly Edition - Publication date:- 2016-11-24

-en Southport & Mersey Reporter

Local News Report  - Mobile Page

 

Cautious welcomes for the package of measures designed to help low earners

THE Low Incomes Tax Reform Group (LITRG) has given a cautious welcome to measures in the Autumn Statement aimed at those on low incomes.  LITRG Technical Director Robin Williamson commented:- "Headline increases in the personal allowance do not generally benefit the lower paid as much as the higher paid. However, the higher benefit awards, reductions in marginal deduction rates and increases in the living wage also announced today make the package of changes as a whole more attractive to the lowest earners. When the personal allowance is increased, those on middle and higher incomes generally gain more than those on lower incomes. Recipients of means tested benefits such as Universal Credit benefit still less, because their benefit is withdrawn as their net income increases. Thus, if (let us assume) the personal allowance is increased by ?1,000, a basic rate taxpayer who did not claim means tested benefits gains by ?200, while a Universal Credit claimant would gain by only ?70 because 65% of their Universal Credit would be clawed back. (The same does not apply to Tax Credit claimants whose credit is assessed on the basis of their gross, rather than net of Tax, income.)  Obviously, people whose incomes are so low that they are not subject to Tax at all see no benefit from increases in the Tax threshold, so other ways must be found of helping them financially. The increase in the national living wage from ?7.20 to ?7.50 an hour from next April is of course welcome, although smaller employers must be given plenty of warning about changes to the whole suite of rates for the national minimum wage and that those new rates also apply from next April, as they will normally expect rises to happen in October and will therefore have to prepare more speedily than they would otherwise.  The reduction of the Universal Credit taper rate on earned income from 65% to 63% is a small step in the right direction, in that it not only increases the Universal Credit received by the claimant, it also reduces the disincentive faced by those on high marginal deduction rates to make financial progress through work. If the Government finds itself with more to invest in encouraging work and in work progression among the low paid, they would do well to consider reversing earlier cuts to the work allowance, the main work incentive element in Universal Credit.  Another way of assisting those on incomes below the Tax threshold would be by raising the personal threshold for NIC to a sum closer to the personal allowance, while maintaining the lower earnings limit; the point on the income scale at which workers become entitled to a national insurance record; at the same level."

 

News Report Page Quick Flick.

Click on here to go to the mobile menu page for this edition. News Report Page Quick Flick
 

Read this page.

Southport Reporter (R) Bourder


  


 

 

 RSS Our Weekly Headlines

 


(+44)  08443 244 195
Calls to this number may be recorded for security, broadcast, training and record keeping.
 

4a Post Office Ave, Southport, Merseyside, PR9 0US, UK

 

Click on to see our Twitter Feed.  Click on to see our Facebook Page.  Click on to follow our LinkedIn Profile. This website is licence to carry news from Vamphire.com and UK Press Photography. 

This is our media complains system...

We are regulated by IMPRESS, the independent monitor for the UK's press.

How to make a complaint
Complaints Policy
Complaints Procedure
Whistle Blowing Policy

 



Southport Reporter® is the
Registered Trade Mark of Patrick Trollope

...