Citizens Advice: Money worries ahead for the weak

Wednesday, June 23rd 2010

The emergency Budget announced yesterday (June 22nd) could trigger a range of cash concerns for the most vulnerable people in society.

That is the view of Citizens Advice, which believes UK households with the lowest incomes will actually be worse off under the new rules and regulations.

Director of policy at the organisation Teresa Perchard says the changes made by chancellor George Osborne will mean those families that are able to secure extra work will see their benefits cut to an extent that will mean employment is not worthwhile.

"The reality is that the proposed changes to personal allowances will be of little benefit, for example, to working families on the lowest incomes who live in rented accommodation," she explains.

Mr Osborne also revealed VAT is due to rise to 20 per cent, which could result in additional money worries for many people already struggling to pay the bills and for essential items.