Andy Burnham issued huge warning over new tax plan for pensioners at Budget
Andy Burnham was warned that increasing the personal allowance for only the poorest pensioners is set to be "messy". The full new state pension will rise by £489 to £13,036 next April under the triple lock policy.
TL;DR
- The UK government plans to increase the personal allowance for the poorest pensioners to match the rising state pension.
- This move is criticized as "messy" and could create a "cliff-edge" where some pensioners with small private incomes are worse off.
- Critics also warn of administrative difficulties for pensioners and the creation of a two-tier system.
- The personal allowance has been frozen at £12,570 since 2021, while the state pension will exceed this amount next April due to the triple lock policy.
- The proposed measure is expected to cost taxpayers £200 million per year by 2030.
- Opposition parties, including the Conservatives and Reform UK, have criticized the plan, advocating for a broader increase in the personal allowance for all taxpayers.
- There are also discussions about the future of the triple lock policy itself, with the Prime Minister considering its removal after the next general election.