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Chancellor 'quietly hammers workers' with tax threshold
Liverpool Echo
|January 02, 2026
RACHEL Reeves is “hammering” workers with stealth taxes while pensioners and those on benefits will see their incomes increase, analysis by a think tank has found.
The Chancellor extended a freeze on income tax and national insurance thresholds until 2031, meaning people face being dragged into paying higher rates as their wages increase over time.
The Centre for Policy Studies (CPS) said someone earning £50,000 today would be £505 worse off in real-terms by 2030-31, despite their salary being forecast to increase by more than £6,000.
The centre-right CPS said there was a “rather sunnier” picture for pensioners and those on the standard allowance for universal credit.
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