JRF response to David Cameron's speech: Tax giveaway will bypass poorer working families
Chief Executive of the independent Joseph Rowntree Foundation (JRF), Julia Unwin responded to David Cameron’s pledge to raise the personal tax allowance.
“Raising the personal tax allowance to £12,500 is a noble intention and of course will be welcomed by many, but it will bypass working poor families in the greatest need and the same increase in incomes could be achieved at a much lower cost.
“The policy will benefit a working couple with two children earning low wages by £20 a week, costing £11.5 billion. But the best way to ensure extra support reaches people on low incomes is reforming Universal Credit, so workers keep more of their earnings before benefits are withdrawn. This approach would deliver the same benefit, but cost between £1 billion and 4 billion.
“Families on low incomes should be allowed to keep more of what they earn. But improving prospects for people living in poverty has to go beyond changes to the tax and benefits system.
“This means a comprehensive approach, with more secure, well-paying jobs in our economy and action on the high cost of living. As David Cameron said, it is not enough to ‘pontificate about poverty’. We need all political parties acting to reduce it.”
Latest News from
NEF - Brexit poses 'severe threat to Britain's fishing communities’21/11/2017 14:35:00
Brexit will almost certainly have a negative economic impact on large parts of Britain’s fishing industry and the coastal communities which rely on it. That’s the key finding of a new report by the New Economics Foundation which analyses different Brexit scenarios according to their impact on different parts of the fishing fleet.
IFS - Student finance reforms which reduce graduate debt levels typically benefit high earning graduates the most21/11/2017 13:35:00
In October, alongside a significant change to the threshold at which student loans are repaid, the Prime Minister Theresa May announced an inquiry into the student loan system.
IFG - Government biased against public borrowing to pay for infrastructure21/11/2017 12:35:00
The Government is using private sector money to keep infrastructure spending ‘off balance sheet’ – even where this appears to be poor value, argues a new report.
Chancellor should save not splurge in tomorrow’s Budget21/11/2017 11:35:00
IEA release briefing ahead of the Budget 2017
The King's Fund responds to the government's announcement on the social care Green Paper21/11/2017 10:35:00
Simon Bottery, Senior Fellow for Social Care at The King’s Fund, said: ‘Although it has been some time coming, it is significant that the government has confirmed that there will be Green Paper that will set out proposals for a long-term solution for social care. But ultimately, the Green Paper will only be meaningful if it results in a fundamental reform to the social care system. This is a challenge that previous governments have ducked and it is vital this government has the courage to deliver real change.