Inflation is rising faster than today’s families have experienced for very many years. The BBC’s Today programme on 16th February featured a family in Wythenshawe with a mortgage who said they were not in poverty but were being hit by the cost of living crisis. To listen to the interview click here. The interview starts at 2:36.36.
One of the problems families like this face is that they are taxed as if they are well off even though this is not so.
Read MoreNew tables developed by Tax and the Family enable users to model the impact of income tax and benefits on family finances. This important new resource will enable us all to have an informed debate about tax and benefit polices. Too often politicians have been able to get away with misleading simplifications.
Read MoreAlthough the income tax system in Scotland differs from that in the rest of the UK, many of the problems are the same.
Read MoreThe BBC have confirmed what Tax and the Family have been saying for years, which is that many families effectively have a tax rate of 70% or more.
Read MoreAs expected the Chancellor has announced an increase in the Minimum Wage from April 2022 but Tax and the Family asks who really benefits. The Treasury seem to benefit far more than the low paid.
Read MoreThe chancellor announced in his October 2021 Budget a cut in the Universal Credit rate from 63% to 55%. This reduces next year the effective marginal tax rate workers receiving universal credit pay on their earnings from 75% to 70%. This is still much higher than in other countries.
Read MoreResearch commissioned by the TUC suggests that over a million children in poverty are children of key worker families. The importance of this research is that all these children are in households where one or both parents work and some will be paying income tax.
Read MoreThe Government released just before Easter new data on living standards based on household incomes in the financial year 2019/20. They say that a couple with two children under 14 needed £40,000 after tax household income to have an average standard of living whereas a single adult needed only £19,200.
Read MoreThe freeze on the personal allowance threshold and the higher rate threshold announced in the budget will hit low and middle income families who are already paying more income tax than much better off households.
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