A Financial Step Up

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.

RobinWalkerMPIt will start to rise towards this from next April, with an increase from £6.70 to £7.20 an hour and will increase every year, at least over the next four, by
well above the rate of inflation.

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.