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IDS: 'This is about fairness in the system'

Work and Pensions Secretary Iain Duncan Smith has said that housing benefit changes that have been introduced today are about "fairness".

In response to criticisms of the so-called 'bedroom tax', he said: "The reality is this is about getting our housing benefit back into order".

"This is about fairness. It's about fairness to those who pay vast sums of money in taxation to see that people living in subsidised accommodation who often don't use the bedrooms they've got, while others in overcrowded accommodation.... they can't get the accommodation they need.

"This is a nonsense problem that was created by the last government who didn't build enough housing and didn't manage the housing stock properly".

Read: What is the 'bedroom tax'

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Changes in personal income tax allowance

Chartered accountants Blick Rothenberg produced this table to show how tax-free income thresholds will change after today's Budget.

The top row shows the amount under 65s can earn tax-free. Credit: Blick Rothenberg

Under 65s can earn their first £10,000 tax-free by the start of the 2014 tax year.

By that point, people earning over £31,865 will enter the 40% higher rate tax band.

National

How the Chancellor's Budget plans to help business

  • New Employment Allowance will take the first £2,000 off the employer National Insurance bill of every company in the country
  • Around 450,000 small businesses - one third of all employers - will pay no employer National Insurance at all after introduction of Employment Allowance in April next year
  • Small firms will be given help through Government procurement budgets, growth vouchers and controls on regulators' charges
  • The Capital Gains Tax holiday will be extended
  • Corporation tax to be reduced by a further 1% to 20% in April 2015
  • Small company and main rates of corporation tax merged at 20p
National

How will the Chancellor's Budget affect you?

Here are some of the measures announced by Chancellor George Osborne that could affect voters' wallets:

  • Rise in personal allowance brought forward to 2014, meaning no income tax on the first £10,000 of earnings
  • Tax free child care vouchers worth £1,200 per child and increased support for families with children on universal credit
  • Flat rate pension worth £144 a week to be brought forward to 2016
  • Fuel duty rise scrapped
  • Help for Equitable Life policy holders extended to those who bought with-profits annuities before 1992, with payments of £5,000 and extra £5,000 for those on lowest incomes
  • Planned 3p rise in beer duty tax scrapped and replaced by a 1p cut in duty on a pint of beer
  • New Help-to-Buy scheme for those struggling to find mortgage deposits will include £3.5 billion for shared equity loans, and a Government interest-free loan worth 20% of the value of a new build house
  • Cap-on social care costs to come in in 2017 and protect savings above £72,000

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