Tax compensation 'will take time'

Compensating those affected by the abolition of the 10p tax band will take time, according to chancellor Alistair Darling.

Low-paid workers, childless couples and those between the ages of 60 and 65 are expected to receive a financial offering from the government, the BBC reports.

Darling has told MPs that the compensation plans will not be fully outlined until the pre-Budget report in autumn; however, he claims that those affected by the situation will have their payments backdated to April.

Conservative party leader David Cameron says the situation is a "shambles".

"Even when it comes to making a U-turn, this government is incompetent …With this prime minister and with this chancellor you have always got to check the smallprint," he commented.

The basic rate of income tax was reduced to 22p to 20p in this year's Budget.