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Citizens Advice response to Treasury Committee report on consequences of the abolition of the starting rate of income tax

30 June 2008

Teresa Perchard, Director of Public Policy, Citizens Advice said:

“We strongly support the recommendations in today’s report calling for the Government to do more to compensate the 1.1 million households who will continue to lose out from the abolition of the 10p tax rate, and in particular the call for future policy to ensure the original 5.3 million affected won’t lose out in future.

“The call to establish a Poverty Commission is also a welcome move. The need to identify the changes needed to put money in people’s pockets to pay their fuel bills next winter is all the more pressing during this period of economic adjustment where the cost of living is rising faster than levels of income and benefits.

“But we also want to see much more activity by the Government to dramatically increase the take-up of benefits and tax credits by families in low paid work. As much as £9.9 billion* of benefits went unclaimed in the financial year 2006/07, the most recent year for which figures are available. And every year Citizens Advice bureaux provide advice on nearly 3.5 million problems relating to welfare benefit, tax credit, and debt.”

*Source: Department for Work and Pensions:
New windowwww.dwp.gov.uk

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.