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It costs the chancellor £0.5bn for every £100 increase in the allowance above inflation.
The left-leaning IPPR proposes a significant, although by no means huge, increase in the allowance for those who have 'made five years of contributions.
While 70% of the cut to tax credits falls on the bottom half of households, 75% of the benefits of the increase in the allowance will go to the top half of households.
However, the increase in the allowance also benefits many earners higher up the income scale, causing some analysts, such as the Institute for Public Policy Research (IPPR), to warn that it is badly targeted.
The first increase in the allowance, from £6,475 to £7,475, was announced in the 2010 Budget and is set to rise again to £8,105 in April.
Obviously Osborne is trumpeting the increase in the allowance… MR CLEGG: The allowance is probably the most interesting one, just because we've been going on about it for close to a decade now.
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Requirements for large increases in the allowance for possible future loan losses based on "worst case" assumptions, along with pressure to sell sound earning assets to meet new capital requirements (more difficult to achieve because of the write-downs) are part of the problem.
In Burkina Faso the lack of a rural allowance was particularly mentioned, as were the demands for an increase in the housing allowance and for health insurance.
Every £100 annual increase in the personal allowance costs £500m.
And the increase in the tax allowance is worth a 10% rise in the minimum wage.
But they benefit less than men from the increase in the tax allowance.
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