- The Conservative Government have cut tax for working people by reducing National Insurance from 12 per cent to 8 per cent. Now they will cut tax for pensioners too.
- From next April the Conservatives will increase the personal allowance for pensioners in line with the Triple Lock by introducing a new age-related allowance – a tax cut of around £100 for 8 million pensioners. They will guarantee in legislation that the pensioners’ personal allowance will rise in line with the highest of earnings, prices or 2.5 per cent so it is higher than the state pension in each year of the next Parliament: the new Triple Lock Plus.
- This is delivering on a core Conservative value that those who have worked hard during their lives should have dignity and security in retirement. Labour will hit pensioners with a Retirement Tax by dragging the State Pension into income tax for the first time, raiding pensioners just like the last Labour government.
Simon Fell has welcomed the Conservatives’ new Triple Lock Plus, cutting taxes for pensioners across Barrow and Furness and guaranteeing people will never pay income tax on their State Pension.
After committing to protect the Triple Lock earlier this year, the Conservatives will go further to boost pensioners’ incomes if they win the next election. In addition to uprating the State Pension in line with the highest of prices, earnings, or 2.5 per cent, the tax-free personal allowance for pensioners will also rise by the Triple Lock – guaranteeing that the State Pension is always below the tax-free threshold.
This means that pensioners will never pay income tax on their State Pension, as the Conservatives continue to deliver on their clear plan to provide dignity and security in retirement.
As a result of the Triple Lock Plus, the average pensioner will see an increase in the State Pension of £428 next year alongside an income tax cut of £95. By the end of the Parliament, it will be a boost of £1,677 a year to their pension and further £275 a year tax cut.
The Triple Lock Plus builds on the Conservative Government’s strong track record of protecting people who worked hard all their lives after their retirement.
The Conservatives first introduced the Triple Lock in 2011, which has seen the State Pension increase by more than £3,700 since they entered office – which is £990 more than if it had been uprated by prices, and £1,000 more than if it had been uprated by earnings since 2010.
Meanwhile Labour have refused to back the Triple Lock Plus and would oversee the State Pension be dragged into income tax for the first time in history if they entered government.
Only Rishi Sunak and the Conservatives have a clear plan to support pensioners and will take the bold action needed to deliver financial security and dignity in retirement. Sir Keir Starmer’s Labour would tax pensioners more, taking them back to square one.
Simon Fell said:
“The Conservatives will always look after people who worked hard all their lives to provide dignity and security to pensioners in retirement, and the Triple Lock we introduced in 2011 is proof of that.
“We have already increased that State Pension by £3,700 since 2010 and I am delighted that our new Triple Lock Plus will guarantee that pensioners in Barrow and Furness will never have to pay income tax on their State Pension.
“Only the Conservatives have a clear plan for pensioners and will take bold action to protect them and deliver security in retirement. Sir Keir Starmer and the Labour Party betrayed pensioners before and would do it again.”
Mel Stride, Pensions Secretary, said:
“A Conservative government is the only one which can provide pensioners the peace of mind in retirement they deserve.
“Labour’s record speaks for itself. The last Labour government waged an all-out assault on pensioners, with a £118 billion pensions tax raid and an insulting 75p increase to the state pension.
“Sir Keir Starmer can pay lip service to pensioners until he’s blue in the face, but we know it will always be the same old Labour, putting our pensioners at the back of the queue.”
