Robin Walker, Worcester MP, has welcomed the introduction of a new national living wage at £9 per hour by 2020 for people 25 and older.
Another welcome measure for the lower paid is that the personal allowance will rise from £10,600 to £11,00 from April next year – worth £80 to the typical taxpayer and meaning they are paying £905 less than in 2010. This will take a further 902 people in Worcester out of tax altogether by April 2016 and represent a tax cut for over 40,000 in the city.
The threshold at which the 40p rate is paid will rise from £42,385 to £43,000. These are the first steps towards the Conservatives’ commitment to raise the personal allowance to £12,500 and the 40p threshold to £50,000 by the end of this Parliament, reducing tax for millions of people.