Conservatives vow to lift minimum wage earners out of tax

27 Apr 15

A Conservative government would legislate to ensure that people earning the National Minimum Wage are permanently removed from paying income tax, Prime Minister David Cameron has said.

Setting out the party’s plan for its first 100 days in office, Cameron also said the Queen’s Speech would include moves to provide three million more apprenticeships, paid for by reducing the benefit cap from £26,000 to £23,000. The programme would also implement the controversial plan to extend Right-to-Buy to social housing tenants.

The prime minister said the proposal to legislate to ensure those who earn the minimum wage never pay income tax would be the centerpiece of the first programme for government.

The Conservatives have set out proposals to increase the income tax personal allowance to £12,500 in the next parliament, from its current level of £10,600.

However, Cameron said there was a need to go further to ensure no-one working 30 hours on the NMW would pay any income tax in the future.

The current government’s economic plan was working, and the Conservatives would offer security at every stage of life, he added.

‘For the next five years, we will turn our long-term economic plan into a plan for you and your family, cutting your tax bill, helping with childcare, creating more jobs, offering more young people the chance to own their own home, and guaranteeing security in retirement.

‘On May 8, the first day of a Conservative government, I will instruct Whitehall to begin drawing up measures so we finish the job of securing a brighter future for Britain.’

Other pledges for the first Queen’s Speech included a bill to allow for schools that are not improving to be taken over by new leadership, and legislation to double the current provision of free childcare to 30 hours a week.

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