Charity warns of ‘slim’ Budget gains for families

counting coins

counting coinsWith all the tax and child benefit changes announced in the Budget, it might be tough to work out whether your family will be better or worse off.

After looking over the major Budget announcements and some of the finer details, Citizens Advice has suggested that the Chancellor's measures might only put £33 more in the pockets of poorer working families each year.

George Osborne told MPs in the House of Commons that from next April, the personal tax allowance will rise to £9,205.

But the charity has warned that despite the financial boost this could provide parents with, other elements of the Budget could hit them in the pocket.

The Chancellor said that an extra £220 could be provided to families as a result of the personal allowance measures. But Citizens Advice indicated that the Department for Work and Pensions will take £187 a year from those who pay tax and receive council and housing tax benefits.

Citizens Advice chief executive Gillian Guy said: "Raising the personal tax allowance is an empty gesture to struggling families on low wages who get housing and council tax benefits.

"For these families, the weekly gain is less than the price of a loaf of bread; a measly 63p per week."