I firmly believe the Government must support pensioners to ensure that they can live with the dignity and respect that they deserve. This includes supporting pensioners in need, and the best way to achieve this is through maintaining the Triple Lock. I welcome that, in April 2024, the previous Conservative Government increased the State Pension by 8.5 per cent, a welcomed boost to pensioners.
I do note the concerns regarding tax thresholds which a number of constituents have written to me about. The previous Government made the difficult but necessary decision to ensure the tax system supports strong public finances, so when the income tax Personal Allowance rose as planned to £12,570 and the Higher Rate Threshold also rose as planned to £50,270 in April 2021, the then Chancellor announced the personal tax thresholds would be frozen until April 2028.
However, under the previous Conservative Government, the Personal Allowance increased by over 40 per cent in real terms since 2010. This was a deliberate policy decision to lower taxes for the majority of workers, ensuring some of the lowest earners do not pay any Income Tax at all. This also benefited pensioners ensuring the state pension fell outside the scope of income tax. If the Personal Allowance had simply been uprated by inflation every year since 2010-11, it would have only been around £9,650 in 2023-24, lower than its current level of £12,570.
I am pleased that, at Autumn Budget 2024, the Chancellor announced that from April 2028, personal tax thresholds will be uprated in line with inflation. I am, however, disappointed that the Chancellor announced £40 billion of tax increases, the largest in a generation, breaking promise after promise and raising taxes for working people. This also means more pensioners falling into income tax. By way of contrast, I was proud to have stood on a manifesto to introduce a quadruple lock to increase the Income Tax Threshold for pensioners to ensure the State Pension would not be liable for Income Tax.
Furthermore, I am deeply concerned about the Government's cruel Winter Fuel Payment cut for nearly 10 million pensioners. Please be assured that I will always press the Government to deliver for pensioners and protect them in retirement.
On taxation and the State Pension, however, any decision to modify the tax regime is a matter for the Treasury under the current Labour Government.
