THE typical household will be £100 worse off from 1 April — as new tax rules kick in.
Most will be hammered by stealth taxes, inflation and higher council taxes.
But the lowest income households will gain £500 in increased benefits and a hike in the living wage.
The richest tenth will be £1,500 worse off as a result of higher taxes.
As the new financial year starts, the Resolution Foundation said the income tax bands freeze will raise an extra £25billion by 2028, nearly three times original estimates.
Commenting on this stealth tax raid, the economic think tank said: “High inflation has pushed up the projected revenue take from the Government’s personal tax threshold freeze to £25 billion a year – almost triple the amount forecast when the freeze was introduced.”
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Economist Adam Corlett warned “difficult decisions on tax and spending” lay ahead.
Meanwhile, council tax will rise by an average 5.1 per cent, with some bills now topping £2,000.
Labour blasted: “Across the country, families tell me that they feel worse off and that nothing is working better than it did 13 years ago when the Tories came to power.”
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