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Stealth taxes cut child benefit and leave families worse off, IFS warns

Stealth taxes are forcing more people into higher tax brackets and cutting child benefit payments because the thresholds are not moving in line with inflation or wages, the Institute for Fiscal Studies has warned.

As the ageing population puts more strain on the health and pensions budgets, its likely the Government will have to impose significant further tax rises on high and middle earners in the years ahead.

Relying on inflation to pull more people into higher tax brackets means families are paying more tax even though their incomes have not risen in real terms, leaving them worse off overall.

As a result, hundreds of thousands more people are losing their tax-free allowance as their pay is…

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