£600 tax cut announced for ordinary workers

The Autumn Statement today contained great news for the Fairer Tax campaign, a £600 income tax cut for every ordinary worker in the country.

Starting next April, 21 million people will pay up to £600 less in income tax. This change will be most beneficial to those on the lowest incomes, so it really is a fairer tax.Thanks to this change, people earning the minimum wage will have seen their income tax bill halved since 2010.

The Lib Dems are campaigning for a tax cut of £700 for every ordinary worker, a goal which is ever so slightly closer today. 

We want to go further. Sign our petition for a £700 tax cut for every ordinary worker now.

 

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Showing 27 reactions


Franni Vincent commented 2013-05-01 09:18:34 +0100 · Flag
I’ve heard today of one more disabled person hit by the so-called “bedroom tax”, my neighbour’s daughter is still struggling through an OU degree as the family couldn’t face having the debt of tuition fees hanging over them, and my granddaughter’s mother -wellqualified primary teacher -is still struggling to find any paying work. I won’t be putting a LibDem poster up until this CONDEM farce is over
Elly Walsh commented 2013-03-11 20:20:46 +0000 · Flag
Any money I get back from a tax goes straight into contributing towards my care costs. Along with the cuts in benefits for disabled people the high costs of heating my home food travel etc etc who does he think he is kidding. My contribution towards my care costs has just doubled its the same old story they give with one hand and rob you blind on the other. Clegg needs to get real about the cost of living with a disability when was the last time he check out the cost of buying a decent wheelchair something I need but have had to put off for another year! I will never get anywhere under the CONDEMS! Clegg stop trying to tell people you are making things better We all know its a lie, but we all also you you will be ok..no struggling to make ends meet for you!
Elly Walsh commented 2013-03-11 20:14:08 +0000 · Flag
What a load of rubbish clegg talks
Paul Sopp commented 2013-03-11 19:58:32 +0000 · Flag
£600, is just 10% of the annual tuition fee imposed by the libdems, breaking your election promise. It will take THIRTY years of £600 savings just to pay the extra costs imposed by the libdems on a 3 year degree course, plus another 10 years for the interest. Nick Clegg, this campaign is a big own goal simply highlighting the broken promises. This is from a libdem voter of 30 years standing. The libdems will disappear from parliament after the next election!
Rodney Yates commented 2013-03-11 19:37:40 +0000 · Flag
As a disabled person I am shelling out Big Time just to keep meaningfully active. I do not see the smug Lib-Dems reaching out to the genuinely needy by handing out to people who Have Jobs, Have meaningful, remunerated occupations and security – achieved by Taking Away from the Most Needy and Plunging 100s of thousands more children into Destitution! Well, Nick Clegg, this could be your most spectacular Own Goal yet – worse than your sorry U-turns on Free teriary education to lure voters away from paths of Genuine Resistance to Torified Squalor. You have caught the Right wing bug of appealing to Base, self-interested, self-serving gut reactions, instead of caring for the vulnerable and defenceless in this society. The Archbishop thinks your shameless skulduggery is a Disgrace, and so do most of your own party.
Gareth Jones commented 2013-03-11 19:18:21 +0000 · Flag
£600 NEXT YEAR will just be lost with other tax rises and inflation, and its not much good for those not working
Most people need extra money NOW.
So how about an extra £600+ p/month NOW?
http://www.I-Can-Make-You-Rich.co.uk
Dave Ladlow commented 2013-03-11 19:08:12 +0000 · Flag
So Are the LibDems giving with one hand and taking with the other? I’m sure I’d rather pay the £600 and let all those poor people at the council keep their jobs. It’s all very well making people slightly better off, but on average £11 per week won’t make much difference reall.
Tom Cotterill commented 2013-02-14 22:54:57 +0000 · Flag
£600 cut in tax, fantastic whilst the price of everything else goes up. It’s all just swings and roundabouts.. While we have thousands of unworthy people taking millions of pounds of benefits. People who contribute nothing to our country, elderly people can not even afford to heat their homes. This government is a joke and the people who vote for all these main stream party’s are a joke. Open your eyes and live in the real world.
Nicky Davis commented 2013-02-11 18:59:52 +0000 · Flag
So now I’ve got the context sorted out, it’s a comparison of the tax situation from April 2013 with 2010 when the coalition got in, I can address the question, what would I do with the £600?

Well, so far I’ve lost more than gained. I have lost £545.34 annual child tax credit, so in April the £593 gain from personal allowance changes will make up for this but not go very far further. In actual fact therefore, the tax changes the coalition have introduced will make me only £47.66 better off each year.

So what could I use this £47.66 for? A few more drops of petrol in the car perhaps. Or household bills. Or I could save it in case I could ever help my children out with paying back their massive student loans (not helped by broken libdem pledges) in the future. Unfortunately it wouldn’t make much of a dent in those.
Nicky Davis commented 2013-02-11 17:01:01 +0000 · Flag
‘Penny’ has finally dropped! It was looking at Stephen Williams’ MP blog that made me realise that the future tense used in the LibDem ad and in its promotion is very confusing and to my mind rather underhand. Also there is nothing wrong with my tax calculations – thanks to ‘full fact’ and ‘tax payers alliance’ for supporting information on that.

When the coalition came to power in 2010, the personal allowance was £6,475 for the 2010-2011 tax year. this increased to £7,475 for the 2011-2012 tax year and £8,105 for the 2012-2013 tax year. For a tax payer with an income into the 20% tax range, the tax saving was £200 for that first change and £126 for the second change. But these have already happened. The increase of the personal allowance to £9440 for the 2013-2014 tax year will give a tax saving of £267 compared with this tax year. The total since the coalition came to power then adds to £593, close to the £600 claimed. But we are not getting £600 in April, we have already had much of this.

Wouldn’t it be a bit more up front to have said in the ad not what WOULD you do with an extra £600? But, what would you do with an extra £267 on top of the tax savings already given by the coalition? Wouldn’t it be a bit less confusing to say, due to changes in the personal allowance since the coalition came to power, 20% tax payers have saved £326 already and this April will save a further £267?

Of course those with incomes falling below the personal allowance figures don’t save this and those in the higher tax brackets save more.
Rodney Yates commented 2013-02-09 10:37:48 +0000 · Flag
All this is Very Bad News for people who rely on public services to eke out an existence in this society – the poor, the disabled, claimants, Seniors, Juniors. LIB DEMS are Bad News for All of us!
jenny bennett commented 2013-02-08 10:41:45 +0000 · Flag
so the government will let me keep more of my money to be able to give it to the council in council tax because i will lose ct benefit due to having more income enabling the government to cut the amount of money they give to the councils because they dont need it.

i did get that right didnt i ?
Chris Roche commented 2013-02-07 07:08:21 +0000 · Flag
I saw the Liberal Democrat Political Party Broadcast last night on the television, and Nick Clegg asked me to come here and explain how I would use an extra £600. Well Nick, since I voted for you I thought I’d do you the courtesy of accepting your offer. I would use it to pay off my increasing student debt. Cheers and all that.
Nicky Davis followed this page 2013-02-07 01:31:20 +0000
Nicky Davis commented 2013-02-07 01:29:31 +0000 · Flag
Could you please explain further where the £600 comes from and what income ranges would result in the “up to” part of this? You see, I can only arrive at the £600 for an income of at least £159,440, which would seem a little more than “ordinary”. And for a more “ordinary” income between £9440 and £41,450 I’m only calculating £267. But then I’m no tax expert, I’m just “ordinary” and I can’t for the life of me figure out what I’m missing. Where am I going wrong please? Perhaps you could give an example, for an average full time worker (ONS) earning £26,500 and maybe a few other examples, so we can better see how this works?
Ej Pearce commented 2013-02-06 23:31:31 +0000 · Flag
What exactly is the ‘average worker’? And what exactly does the ‘ordinary worker’ earn? There’s nothing on this site to indicate this.
Jenny Barford commented 2013-02-06 19:21:46 +0000 · Flag
Why don’t you come clean and say how much worse off pensioners will be.
Jenny Barford followed this page 2013-02-06 19:19:59 +0000
Franni Vincent commented 2013-02-06 19:15:34 +0000 · Flag
No-one on the bottom of the pile will see any benefit from this alleged £600 : on a minimum wage, part-time job, with heating increases & the ‘bedroom tax’ cutting in, there will still be a need for Food Banks for people to survive
Jet Judson commented 2013-02-06 19:05:33 +0000 · Flag
As someone who works hard full time, single, no children and YET pays her and is struggling like hell with debt due to unbelievable electricity costs equalling £300 plus a month over Winter to get my flat to achieve 6-9 degrees C and not now able to pay her basic bills that £600 may just help – I would be better off on benefit and certainly a lot warmer……..
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