Healey is to shield nearly one million pensioners from income tax, but savers with just £1 extra could miss out
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.
Chancellor John Healey is preparing to lift the tax-free allowance to £13,036 for pensioners whose only income is the state pension, with the move expected to be confirmed in his first Budget on Wednesday 28 October. The full state pension will rise by £489 from April, pushing it above the frozen £12,570 threshold. Retirees who receive any additional private pension income appear likely to miss out on the measure, which is projected to cost £200m a year by 2030.
Former pensions minister Steve Webb warned the plan looks 'messy and increasingly expensive'.
Pension experts say it could feel unfair to those who did 'the right thing' and saved.
Retirees on old basic pensions with Serps top-ups may not be protected either.
