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<p>The Summer Budget offered a new deal for working people. It means Britain moving
from a high welfare, high tax, low wage economy to a lower welfare, lower tax, higher
wage society.</p><br /><p>A new National Living Wage for workers aged 25 and above,
initially set at £7.20 per hour from April 2016, will directly benefit 2.7 million
low wage workers, and up to 6 million could see a pay rise as a result of a ripple
effect up the earnings distribution. The new National Living Wage will boost pay for
those currently earning the National Minimum Wage by £4,800 a year by 2020 when the
National Living Wage is expected to rise to over £9 per hour.</p><br /><p>To help
working families keep more of what they earn, the personal allowance will increase
to £11,000 in 2016-17 and £11,200 in 2017-18. The government has committed to increase
the personal allowance to £12,500 by 2020 which will mean that a typical basic rate
taxpayer will see their income tax cut by £1,205 a year compared to 2010.</p><br />
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