Compensation for victims of income tax change

Gordon Brown bought off the great 10p tax revolt today with cash payments for pensioners and childless people.

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In a major retreat, women aged 60 to 64 will get a lump sum, probably £100 or more, to compensate them if they lost out from the scrapping of the starter rate of income tax.
It will be delivered into bank accounts by the autumn in the same way as the annual winter fuel allowance.

Money will also be found for people without children on low incomes who do not qualify for tax credits.

Mr Darling gave no details except that Treasury officials were trying to reward those who lost out, probably using the tax credit system and averaging £2 a week.

The U-turn - the third major rewriting of tax reforms this year - was rushed out to try to get Mr Brown off the hook before Prime Minister’s Questions.