Poorest households hit the hardest by tax policies

THE poorest households are the biggest losers from the UK government’s tax policies, according to a union study.

The TUC said that by the time of the next general election, low-paid workers will be losing up to four times more from the VAT increase than any gains from the raising of the personal tax allowance.

A household with an average weekly income of £195 will gain £1.09 from rises in the personal tax allowance by 2015, but will lose £4.26 a week through the increase in VAT to 20 per cent from January 2011, it said.