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8.3 million families benefit twice from Lib Dem tax cut, new analysis reveals

by Iain Roberts on 26 January, 2015

8.3m families will benefit twice from the Liberal Democrat tax cut, new analysis has revealed.

Thanks to Liberal Democrats increasing the personal tax allowance to £10,600, these families will on average be £1,330 better off each year.

New research using HM Treasury’s tax and benefit model shows that our flagship policy of increasing the amount that people can earn before they pay income tax is vital in creating a fairer society.

Income tax cuts for working people were a top priority for Liberal Democrats when we entered the coalition in 2010 and one which we are proud to have delivered for millions of people.

In government Liberal Democrats have fought tooth and nail to deliver a tax cut worth £825 for more than 26m working people – something which the Conservatives said was not affordable.

And by raising the personal tax allowance to £10,600 we have lifted more than 3m people out of paying tax altogether.

As well as helping families make their money go further we’re also lifting the lowest paid out of paying tax.

By April:

  • 340,000 sales and retail assistants will no longer pay tax.
  • 169,000 care workers and home carers will no longer pay tax.
  • 162,000 cleaners will no longer pay tax.
  • 136,000 catering assistants will no longer pay tax.
  • 91,000 teaching assistants will no longer pay tax.

6 Responses

  1. Bruce thwaite says:

    Workers have been hit by a £40 a week pay cut since Libdems came to power. Average earnings adjusted for inflation have dropped 7.2 per cent since 2010 – leaving millions more than £2,000 a year worse off.

    British workers are taking home less in real terms than when Tony Blair won his second general election victory in 2001, with men and young people hit hardest by the wage squeeze that followed the financial crisis, according to new research.

    The Institute for Fiscal Studies thinktank said wages were 1% lower in the third quarter of 2014 than in the same period 13 years earlier after taking inflation into account.

    It means working people are seeing their living standards squeezed harder every year, despite coalition boasts that we are better off.

    First time for over 100 years that living standards have fallen over the term of a parliament – that is the legacy of the Libdems in goverment

  2. Iain says:

    Thanks Bruce – where does that £2000 figure come from? Complete fiction! Even Labour aren’t claiming that and their figures are dodgy enough. You may have forgotten that there are also more people than ever in work.

    You’re also a bit out of date – wages are now rising faster than inflation and the Lib Dem tax cuts have helped millions of low and middle-income people. Thanks to the Lib Dems the poorest are paying less tax than under Labour and the richest paying more.

  3. Bruce thwaite says:

    Iain – read below – TUC Oct 2013

    Commenting on figures published today (Wednesday) by the Office for National Statistics (ONS) which show that pay growth in the public sector has fallen to 0.1 per cent, a 3.8 per cent real terms pay cut since last year, TUC General Secretary Frances O’Grady said:

    “Millions of public sector workers who did nothing to cause the recession are still being made to suffer through job losses and reduced pay packets.

    “Pay growth in the public sector has slowed to a standstill, with workers now £2,000 a year worse off in real terms since the government took office. Not only are workers having to contend with job insecurity and real wage cuts, many are also facing cuts in other basic benefits like overtime pay and annual leave.

    “These painful pay losses are not only hurting hard-working staff and their families, they are also sucking billions of pounds out of local economies.

    “Britain needs a pay rise to end the longest wage squeeze in over a century – and public sector workers should get their fair share too.”


    – Today’s figures published by ONS show that average weekly earnings growth (including bonus pay) in the public sector (excluding financial services) was only 0.1 per cent in August compared to the same period last year. Earnings growth in the private sector was 1.1 per cent in the same period.

    – The TUC has deflated average weekly earnings figures by RPI to calculate that average public sector pay is £2,073 lower in real terms today, compared to May 2010

    Vat increase – thousands on zero hours contracts – tuition fees despite EVERY Libdem putting his/her signature to a pledge stating that they would never do it – NHS crisis . Those are your legacies

  4. Iain Roberts says:

    By having to quote something nearly 18 months out of date to support your case, you make my point for me – thank you!

    Making University tuition cheaper for poorer grads, record numbers going to universitym record numbers of poorer students going to university, cutting tax for the poorest and raising it for the richest, pupil premium, triple lock on pensions, free nursery care for two year olds, massive increase in full time employment, fastest growing economy in western Europe, stopping the Tory snoopers charter, more people satisfied with the NHS than at any time bar one since 1983.

  5. bruce says:

    However you colour it we are, on average worse off now than 2010

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