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Keith - are you serious or do you really have that bad a memory.
This was the change forced on Brown backtracking over the getting rid of the 10% rate. Even with this change around 1,000,000 people will still be worse off than last year! (That number allows for those for who he has increased other benefits.)
To have fully compensated the low paid he would have had to increase the nil rate band to £7,435. Anyone earning between £6,035 and £7,435 is worse off than a year ago and if they are paying into a personal pension are worse off still....
PaulB. You really are grasping at straws in defending the Government. They did know the impact it would have over a year before it was introduced, they were told by financial advisers and economists, not to mention the Opposition. They were told again 6 months before the change, again a month before the change. Only after the start of the tax year and faced with a backbench rebellion and the loss of the Crewe by-election did Brown cave in. Brown was obstinately claiming no-one would lose out days before he caved in despite the mass of experts telling him the truth.
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