John Denham has welcomed today’s announcement by Chancellor of the Exchequer Alistair Darling of measures to help those disadvantaged by the abolition of the 10p tax band.

In the budget last year, the Government introduced a major simplification of the tax system. The basic rate was cut from 22p to 20p-the lowest rate in 75 years. Allowances for pensioners over the age of 65 were increased, as were the Working Tax Credit, the Child Tax Credit and Child Benefit. As a result of these changes 16 million households have gained and 600,000 more pensioners will pay no tax at all. Furthermore, because of the changes announced in 2007 and in this year’s budget around half a million children will be lifted out of poverty.

John Denham said “Several of my constituents were worried that the abolition of the 10p tax rate would mean that they would lose money.  Although in some cases they probably didn’t need to worry, there were some who could have lost up to £120 per year.  Many more older people on low incomes were worried about the international rises in the costs of food and fuel.  The measures Alistair Darling has introduced will mean 22 million people on low and middle incomes will gain an additional £120 this year.  People aged between 60 and 64, whose average loss was £100, will not only get the  increased personal allowance worth up to £120 but will also receive the additional £50 Winter Fuel Payment for this year.  This was announced in the Budget to help with the international increases in fuel and food costs.”