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.
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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.”
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.”
