View more on these topics

Cowdery fears over cutting tax credits for low-earners

Resolution Foundation chairman Clive Cowdery says he is concerned about future Governments cutting tax credits for low to middle-income earners in a bid to reduce public spending.

Speaking at a Demos fringe event at the LibDem conference on Sunday, Cowdery said: “I am very worried about sweeping changes to the system that leave people on £10,000 to £14,000 a year without that last little bit that they need to close the gap between the income and expenditure that they have.”

Cowdery described low to middle-earners – defined as earning between £11,600 to £27,000 – as “squeezed, exposed and overlooked”.

LibDem Shadow Treasury chief secretary Jeremy Browne said: “In some circumstances, people are paid tax credits legitimately with earnings of over £40,000 a year.

“I do not think if you are looking at areas where you can make economies that that is sustainable in the current environment and there are savings to be made by reducing the levels at which you can claim tax credit but you would not hurt the people on the lowest income scale.”

Recommended

Lighthouse back in profit

Lighthouse Group made a profit of £56,000 for the first half of this year, down from £442,000 profit in the first half of last year but a turn-round from losses of £8.5m at the end of 2008.

System selection

There is one decision that will have a greater impact than anything else on the future growth and profitability of an adviser firm – choosing the right client management system.

RBS considers share rights issue

Royal Bank of Scotland is considering a multi-billion share issue to boost its balance sheet and scale back its participation in the Government’s asset protection scheme, according to reports.

Changes to early exit pension charges

In November last year, the FCA announced that from 31 March 2017, early exit pension charges will be capped at 1% for those customers who are eligible to access their retirement savings from age of 55. The rules also state that for new personal pension plans started after that date, or on new increments into […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment