GB News readers have warned the Conservative government that it has lost votes in this year’s general election, as more retirees are hit by the financial drag.
Analysis by the Resolution Foundation finds that freezing the income tax threshold will make the average tax-paying pensioner worse off by £1,000 by 2027/28, for a total hit of £8bn. did.
The freeze means that more seniors will have to pay contributions each year, as personal allowances remain the same while state and private pension income increases with inflation.
The analysis shows that without the freeze, personal allowance would have risen to £15,220 in 2024/25 and up to £15,990 in 2027/28.
GB News readers said they were “disappointed” by the government’s continued freeze, saying it was letting pensioners down.
They said: “As a pensioner, I am very disappointed with the National Insurance reduction. They do nothing for pensioners. Every increase in pension I receive is taxed. Effectively disposable income. will decrease!
850,000 pensioners will pay income tax
“My personal pension has only increased by a maximum of 3.5 per cent, which has been below inflation for the past few years, which is a further blow to my disposable income.
“The government is making huge cuts to pensioners and freezing personal deductions until 2028 will make the situation even worse for me.
“I wrote to Conservative MPs about this after the mini-budget, but they ignored me, so I will never vote for them again and will vote for another candidate to punish them. .”
Despite the triple lock inflating the state pension, the personal allowance is set at £12,570 until 2028.
This tax threshold freeze means an additional 850,000 pensioners will be dragged into paying income tax over the next four years.
GB News readers complained that the 8.5% state pension was “pointless”.
They said: “The government is changing policies regarding the national pension to suit its own convenience.
“The 8.5 per cent increase is somewhat pointless for myself and many others, as my small occupational pension and state pension combined are already within the tax bracket. , raising it any further would only mean paying more taxes and negating the additional money.”
Another reader said: “When I left, I was receiving around £250 per calendar month, but now I only receive £185. What will I get after April? 8 per cent will drop to around 5 per cent.
“So where will my living expenses come from? I’m not keeping up at all. Consider that it’s time to bring pensions into the 21st century, as they continue to make life harder year after year.”
From next week, pensioners will receive an increase in their UK state pension due to the triple lock pledge.
Those receiving the full new state pension will receive £221.20 a week or £11,502 a year, while those receiving the full basic state pension will receive £169.50 a week or £8,814 a year.
Currently, 8.5 million pensioners pay income tax. But a new study by the House of Commons Library finds that a freeze on personal allowances would result in 1.6 million more retirees paying tax than they would have if the threshold had been set in line with inflation from 2021 onwards. did.
By 2028, the total number of pensioners paying income tax will reach 9.35 million, a record high and almost double the 4.9 million when the Conservatives took power in 2010.
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Liberal Democrat Treasury spokeswoman Sarah Olney said: “These stark figures reveal the stealth tax bomb pensioners are facing under this Conservative government.
“Seniors who have worked hard and contributed so much are being eaten up by years of unfair tax increases.
“Jeremy Hunt’s pensioner-chasing budget plan will be remembered at the next election.”
A Treasury spokesperson previously said: “Our older people have the right to security and dignity in retirement. That’s why this year, in addition to additional direct cash, we are delivering the largest ever 10.1% increase to the National Pension. I did it,” he said. Payments worth up to £1,350 each will be made to support cost of living issues and protection from rising energy bills.
“Since 2010, we have lifted three million people from paying tax by raising the personal threshold. The Chancellor said he wanted to reduce the tax burden further, but sound public finances must come first. ”