The UK is fast heading towards taxing the state Retirement Pension ....
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| Robbed By Labour For Not Working Anymore |
.... how disgraceful is that for any society, let alone a Western democracy?
If the state retirement pension rises by at least the 2.5% minimum of the current triple lock pledge every year, it will mean that the state pension will soon be subject to income tax. This because the lowest tax threshold of £12,570 has been frozen since 2019, and looks likely to remain frozen until 2028 under the Labour party governments now ex-chancellor Rachel 'Robber' Reeves.
If this freeze is confirmed until 2028, then by the 2029/30 tax year, retired people living solely on the full state pension i.e. not receiving any other private pension or income, would face a tax bill of at least £130 pa, as by then, the minimum pension 2.5% rise pa would take the pension amount over the tax threshold. This would equate to a state pension of at least £13,221 per year. So by then, £651 of the state pension would be taxable at 20% or £130.20 per pensioner.
The state pension could be even higher, if inflation runs well above the Bank of England target at any point in the next five years, or if wage growth is above 2.5 per cent, and the so the potential tax paid would be even higher as a result.
This potential taxation of pensioners was raised during the 2024 general election with the Conservatives promising that they would increase the tax-free allowance for pensioners in line with the existing “triple lock,” to ensure it rises each year to stop the state pension being taxed (as well a little bit of any additional pensions), the Labour party chose not to match that pledge, meaning the Labour party will be the first party to tax the state pension.
While in opposition Reeves had claimed the freezing of tax thresholds was like, "The Government is picking the pockets of working people.” ... "because they are dragged into higher tax brackets."
Apparently this concern didn't extend to pensioners, as a senior Government source told a press enquiry that the move to extend the tax threshold for another year or so, would not breach the general election manifesto, which only contained a promise not to increase the rate of income tax to avoid imposing a burden on “working people” .... pensioners of course by definition, aren't 'working people' ... just ex-working people..
Mealy mouthed politicians hiding behind definitions ...... pensioners have been shafted by the party of the working class, because they have ceased working and are therefore expendable in their eyes..
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