Chancellor John Healey is to shield nearly a million pensioners from income tax, but private pension savers 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.
Wednesday's Budget is set to raise the tax-free allowance for the poorest retirees to £13,036 — a figure that would exactly match the new full state pension. The change is needed because a 3.9 per cent triple-lock rise of £488.80 would otherwise push those pensioners above the £12,570 threshold. Only retirees whose sole income is the state pension will benefit. The Treasury puts the annual cost of the measure at £200million by 2030.
Healey is also expected to keep the £268,275 tax-free pension lump sum, despite talk of a £100,000 cap.
Lib Dem Daisy Cooper attacked the 'shocking scale of the stealth tax raid' under Tories and Labour.
The allowance is expected to track the state pension upward for the remainder of this parliament.
