Cost of Living 

Thousands of pensioners in South Devon have  lost out from the recent budget because of the freeze in income tax thresholds. 

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Research by the Resolution Foundation think tank has found pensioners are set to lose an average of £1,000 a year each from the government’s last Budget. This is due to the Conservatives’ decision to freeze income tax thresholds, which will lead to an £8 billion tax bombshell for pensioners across the country by 2027-28, or an average of £1,000 each.

Further analysis suggests this will impact on the estimated 17,379 pensioners in South Devon who pay income tax.

This shows yet again that the Conservative Party has “abandoned” pensioners who are already struggling to pay the bills.

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The Liberal Democrats were the first party to commit in full to the triple lock for the upcoming election, which ensures pensions will see an increase by whichever is highest of average earnings growth, CPI inflation, or 2.5%.

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Liberal Democrats have called on the government to double the Winter Fuel Allowance to offer extra help to pensioners, paid for by a proper windfall tax on the oil and gas companies.

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Caroline Voaden Liberal Democrat candidate for South Devon says:

“Pensioners who have worked hard and paid taxes all their lives are now being punished by this Conservative government with a £1,000 stealth tax.

“Many elderly people are already struggling to make ends meet as heating bills and the cost of the weekly shop go through the roof. Now these Conservative tax hikes will only pile on the misery.

“The Liberal Democrats are proud of our record of introducing the triple lock to protect people’s pensions. We will stand up for the pensioners in our community who have been cruelly abandoned by the Conservatives, including by calling on the Government to double the Winter Fuel Allowance.”

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The data can be found here.

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The Resolution Foundation research can be found here.

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According to the Resolution Foundation, around 8 million pensioners (roughly 70% of all UK pensioners) are taxpayers, losing from freezes to Income Tax thresholds but not benefitting from NI changes (because they are already exempt from paying NI).

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Compared to where the personal allowance might have been in 2027-28 without freezes, the average taxpaying pensioner will lose around £1,000. In total, policy will have increased taxes for pensioners by around £8 billion.

Liberal Democrat analysis allocated the 8 million pensioners among Parliamentary constituencies based on their total number of current pensioners. The constituency hit assumes all affected pensioners face the average hit of £1,000.

 

Current pensioner figures sourced from DWP Stat-Xplore.