CYP Now - Budget 2012: Tax allowance increase will do little to help poorest families, say campaigners

The Chancellor's plan to increase the personal allowance threshold on income tax will do little to help families on the lowest incomes, family campaigners have warned.

In his address to parliament George Osborne said that personal income tax allowance will increase to £9,205.

"I am announcing the largest ever increase in the personal allowance – the amount people can earn tax free," he said. "Every working person on low or middle incomes will benefit. People will be able to earn up to £9,205 before they have to pay any tax. Millions of working people will be £220 better off every year."

But responding to George Osborne’s Budget announcement today (21 March) Rhian Beynon, head of policy at Family Action, said the poorest households with children will see little benefit from the measure.

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