Conservatives Promise Tax Cuts for Pensioners with “Triple Lock Plus” Plan
In an effort to support pensioners and provide them with financial security in retirement, the Conservative party has unveiled a new tax plan known as the “triple lock plus”. Under this plan, pensioners would receive a tax-free allowance that would increase in line with either average earnings, inflation, or by 2.5%, whichever is higher, starting from April of next year. This echoes the rules for annual increases in state pension.
Chancellor Rishi Sunak stated that this move “demonstrates we are on the side of pensioners” and aims to bring them peace of mind in their retirement. However, Labour’s shadow paymaster general, Jonathan Ashworth, criticized the plan, calling it “another desperate move” from the Conservative party. He also questioned the party’s credibility on tax policies, citing the country’s highest tax burden in 70 years.
The Liberal Democrats also expressed their skepticism towards the Conservative’s new plan, stating that the party has previously “hammered pensioners with years of unfair tax hikes”. The party’s spokesperson added that people will not be fooled by yet another empty promise from the Chancellor.
The triple lock was first introduced by the Conservatives in 2010 when they were in a coalition government with the Liberal Democrats. Its purpose was to tackle pensioner poverty by ensuring annual rises in the state pension to protect retirees from rising living costs. Both Labour and the Liberal Democrats have promised to keep this policy in place.
While the state pension has continued to rise, the threshold for when both pensioners and working-age individuals pay income tax has remained frozen since April 2021. This has resulted in some low-income individuals being brought into the tax bracket. The new “triple lock plus” plan aims to change this for pensioners by guaranteeing that their personal allowance will always be higher than the new state pension level.
The Conservatives estimate that this policy will save around £100 for eight million people next year and provide further savings as the tax-free allowance increases. The £2.4bn a year policy will be funded through “clamping down” on tax avoidance and evasion.
Chancellor Sunak emphasized the importance of supporting those who have worked hard all their lives, stating, “This bold action demonstrates we are on the side of pensioners.” He also warned of the alternative, with Labour potentially bringing all recipients of the full state pension into income tax for the first time in history.
Labour’s Mr. Ashworth countered this claim, stating that his party will protect the triple lock. He also criticized the Conservatives for their unfunded £46bn policy to scrap national insurance, which he believes threatens the state pension’s very basis.
In contrast, Labour will focus on appealing to businesses on Tuesday, with shadow chancellor Rachel Reeves making her first major speech of the general election campaign. She will promise to lead “the most pro-growth Treasury in our country’s history” if her party takes power, emphasizing the importance of supporting both workers and businesses.
Meanwhile, the Liberal Democrats will shift their focus to crime on the campaign trail, pledging to introduce a “burglary response guarantee” to ensure all domestic burglaries are attended by the police and properly investigated.
As the general election campaign continues, each party is making promises and outlining their plans for the future of the country. It is important for voters to carefully consider each party’s policies and make an informed decision when it comes time to cast their vote.
