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Healey's State Pension Shield Could Create 'Messy £200m Cliff Edge'
Healey will use his first Budget to spare pensioners with only state income from tax, while Treasury details on the allowance remain unclear.
- In The Budget, Chancellor John Healey will introduce a new tax allowance for low-income pensioners, raising the tax-free threshold to £13,036 to ensure they remain exempt from paying income tax.
- A 3.9 per cent increase in the state pension to £13,036 necessitates this fix, as the payment would otherwise exceed the £12,570 personal tax allowance for the first time.
- Ministers are reviewing disability benefits and the Personal Independence Payment for claimants under 25, a category that currently includes over 250,000 individuals, as Prime Minister Andy Burnham navigates competing welfare reform demands.
- Liberal Democrat Treasury spokeswoman Daisy Cooper argued for a new growth partnership to "ease the huge tax burden weighing people down," while The Green Party urged Healey to "make the UK affordable."
- Treasury sources expect a restrained fiscal event compared to recent years, as Burnham has promised to avoid "crude cuts" to Britain's benefits bill while further reviews into PIP are expected.
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Healey's state pension shield could create 'messy £200m cliff edge'
The Treasury’s plans to shield low-income pensioners from income tax could lead to a “messy” cliff edge and a ballooning bill for future governments, a former pensions minister has warned. Chancellor John Healey will use his maiden Autumn Budget this week to protect nearly one million retirees who are dependent on the state guarantee by [...]
·London, United Kingdom
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The IndependentReposted by 
The Independent (US)
The Independent (US)What the Budget will mean for pensioners and income tax
Several major policy announcements are expected at the event
·London, United Kingdom
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John Healey set to shield nearly one million pensioners from income tax in Budget
John Healey set to shield nearly one million pensioners from income tax in Budget . Chancellor John Healey is poised to protect close to a million low-income pensioners from being dragged into paying income tax when he delivers his first Budget on Wednesday
·London, United Kingdom
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Coverage Details
Total News Sources11
Leaning Left2Leaning Right4Center2Last UpdatedBias Distribution50% Right
Bias Distribution
- 50% of the sources lean Right
50% Right
L 25%
C 25%
R 50%
Factuality
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