Forget affordability. The toughest problem facing Treasury officials may be finding a way to make timely payments to some of the 5.3m households that are set to lose out from scrapping the 10p rate.
The rub is that if officials choose to keep Gordon Brown happy by using his cherished tax credits system, the lucky losers identified for compensation may be waiting for up to 18 months for their backdated cheque. This would coincide with the much heralded plans to raise the minimum wage, which will not come into force before October 2009. Read more