Walker welcomes new income boost for ordinary working families in Worcester

Worcester’s MP Robin Walker has welcomed the news that ordinary working families in Worcester are set to benefit from a range of Government measures coming into effect this week.

From today, the tax-free personal allowance will rise for the seventh year to £11,500, benefitting around 45,281 people in Worcester and meaning a typical basic rate taxpayer will pay a full £1,000 less income tax than in 2010.

As a result of our changes to the personal allowance and higher rate threshold, 2,570,000 individuals in the West Midlands gain on average £187, and a total of 122,000 individuals will have been taken out of income tax altogether, compared to 2015-16.

The personal allowance is rising from £11,000 and will increase to £12,500 by the end of the Parliament. Since 2010, the government has taken action to reduce taxes and enable working people to keep more of what they earn. Someone with a salary of £15,000 pays just £800 a year in tax now compared to £1,705 in 2010. That’s a massive tax cut for 31 million people since 2010 and taking 1.3 million people out of income tax altogether.

In addition:

  • The National Living Wage – which delivered a pay rise to a million people last year – will rise again to £7.50: an income boost of over £500 for a full time worker in Worcester.
  • The Government will provide up to £2,000 a year per child through the roll out of tax-free childcare, to help with childcare costs for families in Worcester.
  • Hard-pressed savers will get a boost, with access our new market-leading NS&I bond which will pay 2.2% on deposits up to £3,000.

Robin said:

“We’ve come a long way in the last seven years – there are 2.8 million more people in work, unemployment is at its lowest for twelve years and we’ve cut income tax for over 30 million people. But there is more to do to help people in Worcester and across the UK feel the benefits of the recovery, and make ends meet. “

“The rise in the tax-free personal allowance is a policy I first called for in 2013 – it has now been adopted as Conservative Party policy, and delivered by a Conservative Government.”

“By giving the lowest paid a wage boost, taking more people out of income tax, boosting savings and helping with the cost of childcare, we’re putting ordinary working people at the heart of our plan for Britain: to build a stronger, fairer economy that works for everyone.”

ENDS

Notes to editors

For more information on the increases in the National Living Wage, National Minimum Wage and Personal Allowance, please see:

https://www.gov.uk/government/news/spring-pay-bump-for-britains-workers-as-tax-changes-come-into-effect

For Robin’s recent statement on record wage growth, please see:

http://www.walker4worcester.com/walker-welcomes-record-wage-growth-for-worcester-workers-ahead-of-budget-2017/

For Robin’s previous statements on wages in Worcester:

http://www.walker4worcester.com/conservatives-give-big-boost-to-the-lowest-paid-in-worcester-as-national-living-wage-begins/

http://www.walker4worcester.com/raising-wages-and-cutting-tax-is-better-than-complex-and-expensive-redistribution/

http://www.walker4worcester.com/today-marks-the-first-step-to-a-higher-wage-and-a-higher-productivity-economy/

http://www.walker4worcester.com/wages-are-rising-as-unemployment-falls-and-worcester-woman-is-leading-the-way/