YORK’S Joseph Rowntree Foundation has spoken up for low income families which it claims have been bypassed by the Prime Minister’s tax reforms.

David Cameron pledged in a speech which ended the Conservative party conference yesterday to raise the personal tax allowance from £10,500 to £12,500 by 2020.

He also said the threshold for the 40p income tax rate would be raised from £41,900 to £50,000 by the end of a five-year Conservative government, claiming the changes would back people who “do the right thing.”

The chief executive of the York-based foundation, Julia Unwin, said raising the allowance to £12,500 was a “noble intention” and would be welcomed by many.

But she claimed that the move would bypass working poor families in the greatest need and that the same increase in incomes could be achieved at a much lower cost through different measures.

“The policy will benefit a working couple with two children earning low wages by £20 a week, costing £11.5 billion,” she said.

“But the best way to ensure extra support reaches people on low incomes is reforming Universal Credit, so workers keep more of their earnings before benefits are withdrawn. This approach would deliver the same benefit, but cost between £1 billion and £4 billion.”

She said improving life for people in poverty needed to go beyond tax and benefits and focus on bringing more well-paying jobs in and taking action on the high cost of living.