The Prime Minister has explained the Government's changes to income tax bands, such as abolishing the 10 pence rate, and said there are "better ways" to lift people out of poverty.
Responding to MPs during PMQs, the PM said that the 10p starting band that came to an end in this year's budget had been set up as a "transitional measure" in 1999. The Government will do more to protect low income families and combat poverty through measures such as working tax credits, he added.
Reiterating the announcement made by Alistair Darling in a letter to the Chairman of the Treasury Select Committee this morning, Mr Brown said that the Government was looking at specific measures to compensate those groups that may be affected by the changes, especially low income families without children and pensioners in the 60 - 64 age bracket. Any resulting payments will be backdated to the start of the financial year.
Speaking to journalists later in Downing Street, the PM said the Government had "listened" to the concerns of the British people and looked at what could be done - the decision taken had been "the right thing to do", he said.
The Chief Secretary announced on Monday that the Government would extend its existing programme of work on the next stage of support for low income households with children to include consideration of individuals and households on low income without children.
The Chancellor said in his letter that the Government will examine in that review all practical propositions, with the focus on potential changes to the tax credit system to allow the average losses from the removal of the 10p starting rate of income tax to be offset
Read the Chancellor's letter to Treasury Select Committee here:
