It was one of our big 4 policies at the last election.  It was on the front page of our manifesto.  Matt Chorley, The Independent on Sunday’s political correspondent, described it as our best policy but why is the £10,000 income tax threshold so important?

With the on-going financial problems across Europe and the rest of the world, hard working people are finding their living standards squeezed.  Many of us can cut back on discretionary spending or a few little luxuries.  But many people have to watch every penny just to cover the cost of living.  They’re having to cut back on essentials to make ends meet.

“Imagine a mum who works 3 days a week as a teaching assistant – earning £10,000 a year or just over £190 a week. Under Labour she paid more than £1,000 in income tax and national insurance. Although she wanted to work more days a week she knew it was not financially worth it. Under Labour; tax, tax credits and housing benefit would have been deducted, leaving her with just 10.5p for every extra pound she earned.

“Under our plan she would see her income tax bill cut to zero making her £700 a year better off.”

The change is being introduced in yearly steps but Nick Clegg this week called for the plan to be speeded up.  In his speech to the Resolution Foundation he said “household budgets are approaching a state of emergency” and “the government needs a rapid response”.  He went on to say “I want to help the hard-pressed and the hardworking.  If that means asking more from those at the top – so be it.”

Our £10,000 plan helps the lowest earners.  It helps those whose weekly household budgets have no more room to cut back.  It helps those for whom every penny makes a difference to their livelihood and our plan is needed  now more than ever.