CENTRAL DEVON MP Mel Stride has welcomed a range of Government measures coming into effect this week as the new tax year begins. From today (06/04/17) the tax-free personal allowance will rise for the seventh year to £11,500, taking 116,000 of the lowest-paid workers in the region out of income tax altogether and giving 2.7million people in the South West a tax-break of around £200 a year. Someone with a salary of £15,000 will now pay just £800 a year in tax now compared to £1,705 in 2010.
Mr Stride said:
“For a county like Devon with some of the lowest average wages in the country, the Government measures coming into effect today will make a big difference to many hard-working local families. The increase in the National Living Wage to £7.50 an hour will mean a full-time worker on that income will get a £500 pay rise, leaving them £700 a year better off since they will also be paying £200 less in income tax. The Prime Minister is determined to deliver an economy that works for everyone and this is a step in the right direction.”
Other measures coming into effect today include the roll out of tax-free childcare, which will provide up to £2,000 a year per child to help with childcare costs and a market-leading NS&I bond which will pay 2.2% on deposits up to £3,000 – providing a boost for hard-pressed savers.