Chancellor Healey is to shield nearly a million pensioners from income tax, but those with private pensions will still pay
John Healey, who resigned as Chancellor in June demanding Britain reach 3% of GDP on defence by 2030, now says the timetable will wait for next year's spending review.
Pensioners living only on the state pension are expected to see their tax-free allowance raised to £13,036 in Wednesday's Budget, exactly matching the full new state pension. The triple lock will add £488.80, or 3.9 per cent, pushing the payment past the £12,570 personal allowance. The Treasury puts the bill at £200million a year by 2030. Anyone with workplace or private pension income gains nothing.
Healey is also expected to keep the tax-free pension lump sum at £268,275 rather than cut it to £100,000.
The Lib Dems' Daisy Cooper says the figures 'expose the shocking scale of the stealth tax raid'.
A hospitality worker of 50 years asks why her pension is taxed when Universal Credit is not.
