Middle Britain is faring best from six years of George Osborne as statistics show that working parents and pensioners have saved thousands of pounds thanks to his budgets. Many families will be better off thanks to the chancellor’s decision to raise the amount that people can earn without paying tax to £11,500 and to increase the higher-rate tax threshold to £45,000.
According to the figures produced for The Times by PwC, which take into account changes to child benefit, tax credits and income tax from 2010 to 2017, the biggest gainers will be working parents who both pay basic-rate tax and whose combined earnings are between £40,000 and £65,000.
For example, a family where one parent earns £45,000 and the other earns £20,000 can expect to be nearly £400 better off in the next tax year. They will have gained £2,334 since 2010.
Elliot and Natasha Goodman, aged 32 and 30, who live in Hendon, northwest London, say the news that the personal allowance and the higher rate threshold will rise is “definitely welcome”.