Tuesday 29th April 2008
Citizens Advice is urging the government to compensate those who are likely to lose out following the removal of the 10p rate of income tax.
The consumer advisory service terms the withdrawal of the 10p rate as being "of great concern" in light of the 3.5 million tax credit, welfare and debt queries it receives each year.
In light of the impact the move is expected to have on a number of societal groups, Citizens Advice recommends widening access to tax credits and other benefits for such people.
Possible steps which could be taken include allowing carers to obtain working tax credits if they are needed for more than 16 hours each week, the organisation states.
This would reflect the inability of such individuals to also hold a full-time job, Citizens Advice explains.
Households without children, but which are still entitled to working tax credit, are also a key area of focus.
The advisory service explains that less than a quarter of these are currently obtaining the benefits to which they are entitled.
Working tax credits are also recommended as being a way of compensating under-25s who have no children - another demographic likely to be earning less as a result of the removal of the 10p band.
Citizens Advice social policy officer Katie Lane comments: "While we welcome the governments recent commitment to compensate those who have lost out, it is vital that any measures can be introduced quickly, are backdated and are easy for people to receive."
The organisation recently published the second edition of its Guide to Your Rights, providing 600 pages of advice on consumer and legal rights within the UK.
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