MPs in 10p tax band row

The MP for Bolton South-east, Brian Iddon, has written to the Labour Party Chief Whip.

And David Crausby, Labour MP for Bolton North-east has written to the Chancellor Alistair Darling calling for action to be taken to help the five million people affected by the change.

He said: "I think this is a mistake. We need to come up with some action to compensate those people who have lost out. It might be that a total reverse is not possible but we shouldn't be in the business of making the poor even poorer.

The tax change was announced in the then-Chancellor Gordon Brown's final budget last year and came into force earlier this month.

The abolition of the 10p rate enabled him to cut the main rate of income tax by 2p to 20p, with tax credits to alleviate the impact on the poor.

However, it has been claimed households without children or anyone over the age of 65, on incomes of under £18,500-a-year, will lose out as a result of the changes.

Those not entitled to tax credits or failing to claim them could lose out by as much as £232 a year, according to the Commons Treasury Committee.

Dr Iddon said: "Some of the worst affected are people aged between 60 and 65, single men and women and couples without children who have low incomes. I'm confident the party will do something about this and I'm hoping this is temporary."

Prime Minister Gordon Brown had to interrupt an official visit to America last week to deal with the rising unrest within the Labour Party over the plans.

He was forced to speak to Angela Smith, parliamentary aide to Treasury Chief Secretary, Yvette Cooper, by phone after she reportedly told colleagues she was ready to quit.

Several other backbench MPs have also openly criticised the move.

More than 70 MPs have signed one of three Commons motions calling for action on the abolition of the 10p rate.

The Finance Bill enacting changes in this year's Budget is still before Parliament, providing a focus for rebellion.