Pay rise BONANZA on its way for 30 MILLION who will benefit in taxes windfall

MILLIONS of Britons are in line for an Easter bonanza as the Chancellor delivers a windfall on pay, tax and savings.

George Osborne will this week keep his pledge to give Britain a pay rise with the introduction of the National Living Wage set to benefit more than 2.7 million low income workers.

Tax on savings will also be slashed and income tax thresholds will rise, meaning over 30 million people will be better off

David Gauke, Financial Secretary to the Treasury, said: “We’re on the side of working families, that’s why in just a few days’ time steps we’ve taken will see hundreds of thousands of people taking home a bigger pay packet and keep more of their hard-earned cash.

We’re on the side of working families

David Gauke

“We’re helping more people to provide for themselves and their families. Alongside this, we’re helping savers too, with a new personal savings allowance and flexible Isas so we can support people as they plan for their future.”

The introduction of the National Living Wage on Friday will see the minimum pay rate for over-25s rise to £7.20 an hour and then to £9 by 2020.

The move will mean a pay rise for minimum wage rate across any G7 country since 2009.

Around 65 per cent of those who will benefit directly are women.
The Office for Budget Responsibility estimates 1.9 million women will be earning the national living wage by 2020.

The new rate will apply to those aged 25 and over.

Those under 25 will receive the existing rates, which range between £3.87 for apprentices to £6.70 for those 21 to 24.

More than 30 million people are also set to see their income tax bill fall from April when the personal allowance is increased by £400 to £11,000 and the higher rate threshold will increase by £615 to £43,000.

According to Treasury analysis, it means a typical basic rate taxpayer will pay £905 less tax from April 2016 as a result of changes made since 2010.

A typical higher rate taxpayer will pay £818 less tax from April 2016 as a result of changes made since 2010.

The marriage allowance will also increase in line with personal allowance, allowing an individual to transfer up to £1,100 of their personal allowance to their spouse, cutting the tax bill by £220.

From next month, 28 million people will also benefit from a new personal savings allowance which will permit them to earn £1,000 in interest tax free.

This will mean the vast majority of taxpayers will have no tax to pay on their savings income.

Automatic deduction of 20 per cent income tax by banks and building societies on non-Isa savings will cease from the same date.