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UK budget pensions tax raid to raise over 3 billion pounds, FT reports
Ending the triple lock could push millions of UK pensioners below minimum income standards and cause many to pay income tax on their state pensions from 2027, experts warn.
- Sir Steve Webb, former Liberal Democrats Pensions Minister, warned 26 million state pensioners could be at risk if the state pension triple lock is scrapped before the Chancellor’s Budget on 26 November.
- Earlier this year, the Labour Government confirmed the Personal Allowance £12,570 is frozen until April 2028, and replacing the triple lock with earnings or prices link could put 1.4 million and over 7 million worse off respectively.
- On his programme, Martin Lewis warned `It will probably be the first time that someone on the full New State Pension will pay tax on that income even if they don't earn anything else` as the pension surpasses the Personal Allowance by April 2027.
- Advocates warn the majority of older people could be taxed on their state pension and that tax would immediately cut the value of increases by 20, and Reed urged a 1,000 immediate payment.
- The Institute for Fiscal Studies warned that, without an exemption, millions of pensioners on low incomes could be forced to pay tax on their state pension from 2027, and Mr Webb urged the Chancellor to boost pension saving in the Budget rather than undermine it.
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UK budget pensions tax raid to raise over 3 billion pounds, FT reports
British finance minister Rachel Reeves' budget tax raid on salary sacrifice schemes is set to raise 3 billion pounds to 4 billion pounds ($3.93 billion to $5.24 billion), hitting businesses and encouraging employers to cut pension payments to staff, the Financial Times reported on Friday.
·United Kingdom
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A report is circulating, based on NOS reporting: "1.6 million policyholders face a fiscal blow." Government Commissioner for Pensions Transition, Fieke Van der Lecq, hopes this will encourage employers to adapt their pension plans to the new pension legislation more quickly.
·Amsterdam, Netherlands
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Coverage Details
Total News Sources7
Leaning Left0Leaning Right3Center4Last UpdatedBias Distribution57% Center
Bias Distribution
- 57% of the sources are Center
57% Center
C 57%
R 43%
Factuality
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