An increase in the personal allowance before people pay income tax means 24 million people will get a tax cut.
It also means more than two million of the lowest paid will stop paying income tax altogether. The Personal Allowance will rise by £1,335 in April – the largest ever increase.
Meanwhile, the state pension will rise by more than either earnings or inflation, taking the full Basic State Pension to £110.15 a week. Free bus passes are also being protected.
A plan to limit benefit increases for people of working age to the same as those already in work has, meanwhile, been opposed by Labour.
