Helen criticises Chancellor’s ‘pensioner stealth tax’
Helen Morgan MP has called on the Chancellor to explain how she will protect pensioners, after it was revealed a million more older people will pay income tax this year.
Findings from the Office for Budget Responsibility (OBR), buried in this week’s Spring Statement delivered by Rachel Reeves on Tuesday (3rd March), show the State Pension rising above the Income Tax threshold, which was frozen again in last year’s Budget.
The OBR found that an additional 600,000 people on the state pension will be brought into paying income tax by 2026-27, rising to one million by 2030-31.
Helen said the Chancellor should come back before Parliament and set out how pensioners will be protected from the so-called “stealth tax”.
Helen said: “Buried in the small print of the Chancellor’s Spring Statement is a shock stealth tax hitting another one million pensioners, including those in North Shropshire.
“For poorer pensioners, every penny counts and these unfair tax hikes could be the final straw. Rachel Reeves must urgently explain how she will protect older and poorer pensioners from this stealth tax squeeze.”
The personal allowance has been stuck at £12,570 since April 2021 and was frozen until at least 2028 in the November Budget, meaning the allowance has decreased in real terms (accounting for inflation).
Helen added: “Pensioners in North Shropshire have worked hard all their lives, paid into the system and played by the rules. They should not be made to pay the price for this Labour government’s economic failure.”