Thread by @Telegraph

🔴NEW: More than one million people are set to be dragged into the higher rate tax band by 2026, with economists warning that Britain is facing the biggest cost of living crisis for a generation telegraph.co.uk/politics/2022/…

📈The Treasury's plan to freeze income tax thresholds – which comes at a time of rapid wage and price inflation – will push more than 1.2 million workers' earnings above the 40p threshold in the next four years

❌The research emerged as the Government faces criticism over its handling of the cost of living squeeze facing families.

Energy bills are set to soar as a planned increase to National Insurance Contributions looms in April

📊The House of Commons Library analysis found that an extra 1.2 million people will be driven into the the 40p higher rate tax band – which starts at £50,070 – by 2026 than if the Government were to raise that threshold in line with forecast inflation to £56,270

➡️Meanwhile, an extra 1.5 million low paid earners will be pushed into the 20p basic tax rate, which starts at £12,570, than if the personal allowance threshold rose in line with forecast inflation to £14,070 over the next four years

🔴These income tax threshold freezes will collectively cost families almost £11 billion by 2026.

The policy is forecast to cost the average household an extra £430 a year by then

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telegraph.co.uk/politics/2022/…