Income tax changes that have come into effect will help make work pay, Chief Secretary to the Treasury Danny Alexander has said.
The Lib Dem minister said an increase in the personal allowance to £9,440 would benefit "people working hard on ordinary incomes".
But Shadow Chancellor Ed Balls called the changes a "giveaway" for the rich.
The top rate of income tax will drop from 50p in the pound to 45p for people with incomes of more than £150,000.
Labour's Mr Balls said that as a result of the changes, working families would be up to £4,000 worse off, while millionaires got average tax cuts of £100,000.
On Radio 4's Today programme he asked if it was right at a time when "all families are worse off, for the priority for the government not to change course on the economy, but to give a tax giveaway on this scale to people on the highest earnings?"
But Mr Alexander countered, saying the coalition government "is working hard to help those on low and middle incomes."
He added: "We think it's important that we make work pay, that we reward people who are working hard on ordinary incomes and that is what the increase in the personal allowance will do.
"The wealthy are paying more in every year of this government than they did during the entire period Labour was in office."
Prime Minster David Cameron tweeted: "From today 24 million people will be paying £600 less income tax than in 2010".
His message also included a link to a new Conservative poster outlining the change with the headline "Help for Hardworking People".
And Labour has launched its own poster - with the slogan "Who Wants to Bung a Millionaire? Dave Does" - claiming the coalition's reforms mean high earners are benefiting while millions are now worse off.
The Lib Dem minister said an increase in the personal allowance to £9,440 would benefit "people working hard on ordinary incomes".
But Shadow Chancellor Ed Balls called the changes a "giveaway" for the rich.
The top rate of income tax will drop from 50p in the pound to 45p for people with incomes of more than £150,000.
Labour's Mr Balls said that as a result of the changes, working families would be up to £4,000 worse off, while millionaires got average tax cuts of £100,000.
On Radio 4's Today programme he asked if it was right at a time when "all families are worse off, for the priority for the government not to change course on the economy, but to give a tax giveaway on this scale to people on the highest earnings?"
But Mr Alexander countered, saying the coalition government "is working hard to help those on low and middle incomes."
He added: "We think it's important that we make work pay, that we reward people who are working hard on ordinary incomes and that is what the increase in the personal allowance will do.
"The wealthy are paying more in every year of this government than they did during the entire period Labour was in office."
Prime Minster David Cameron tweeted: "From today 24 million people will be paying £600 less income tax than in 2010".
His message also included a link to a new Conservative poster outlining the change with the headline "Help for Hardworking People".
And Labour has launched its own poster - with the slogan "Who Wants to Bung a Millionaire? Dave Does" - claiming the coalition's reforms mean high earners are benefiting while millions are now worse off.
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