Rishi Sunak resurrects tax cut for pensioners his own party scrapped

27 May 2024 , 21:30

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Rishi Sunak wants to bring back age-related personal allowances that were scrapped by George Osborne (Image: Getty Images)

Rishi Sunak will today say he wants to resurrect a tax cut for pensioners his own party was responsible for scrapping.

If the Conservatives win the General Election, the Tory leader said he will introduce a "new age-related" allowance for over 65s. They were phased out by Tory austerity Chancellor George Osborne back in 2013 - in a move described as a "granny tax" at the time.

Under Mr Sunak's plan from April 2025 the income tax personal allowance for pensioners will go up in line with the triple lock. The pledge would mean both the state pension and pensioners' tax-free allowance will always rise in line with the highest of earnings, wages or 2.5%.

Billed the "triple lock plus", the Tories said it will cost £2.4billion-a-year by the end of the decade and will be funded through a clampdown on tax avoidance. For individual pensioners, the party said it would be worth around £100-a-year.

In an attempt to revive his chaotic election campaign, Mr Sunak said: "I passionately believe that those who have worked hard all their lives should have peace of mind and security in retirement. Thanks to the Conservatives’ Triple Lock, pensions have risen by £900 this year and now we will cut their taxes by around £100 next year."

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But Labour's Jonathan Ashworth said: "Why would anyone believe the Tories and Rishi Sunak after they left the country with the highest tax burden in 70 years? This is just another desperate move from a chaotic Tory party torching any remaining facade of its claims to economic credibility.

“Not only have they promised to spend tens of billions of pounds since this campaign began, they also have a completely unfunded £46 billion policy to scrap national insurance that threatens the very basis of the state pension.

"Labour will protect the triple lock. But Rishi Sunak is planning to reward Britain’s pensioners for their loyalty by stabbing them in the back, just like he did to Boris Johnson and just like he has done to his own MPs.”

Ashley Cowburn