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Citizens Advice calls on Chancellor to ensure people affected by removal of 10p tax rate will be compensated quickly and effectively

28 April 2008

National charity Citizens Advice has written to the Chancellor, Alistair Darling urging the government to fully compensate everyone who is worse off financially from the removal of the 10p starting rate of income tax. The charity has called for any compensation to be introduced quickly and effectively, taking into account any potential barriers such as difficult claiming procedures.

Citizens Advice stresses that any compensation package must include:

Citizens Advice Social Policy Officer, Katie Lane said:

“Every year Citizens Advice bureaux provide advice on nearly 3.5 million problems relating to welfare benefit, tax credit, and debt. The effect of the removal of the 10p starting rate of income tax is therefore of great concern to us.

“While we welcome the government’s 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. Any barriers, such as complex claiming procedures could cancel out any positive impact.

“Whatever package of remedies is ultimately implemented it is absolutely essential that they are accompanied by significant measures to dramatically increase take-up of means tested benefits and tax credits by families in low paid work, and to improve the standards of service provided by the HMRC and DWP.”

Notes to editors

  1. The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more information in England and Wales see www.citizensadvice.org.uk
  2. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality. For online advice and information see New windowwww.adviceguide.org.uk
  3. Citizens Advice Bureaux in England and Wales advised 2.1 million clients on 7.1 million problems from April 2010 to March 2011. For full 2010/2011 service statistics see: www.citizensadvice.org.uk/press_statistics
  4. Out of 22 national charities, the Citizens Advice service is ranked by the general public as being the most helpful, approachable, professional, informative, effective / cost effective, reputable and accountable. (nfpSynergy’s Brand Attributes survey, May 2010).
  5. Most Citizens Advice service staff are trained volunteers, working at around 3,300 service outlets across England and Wales.