An analysis by the House of Commons library has revealed that up to 1.6 million pensioners are expected to fall into the income tax net in the next four years.
According to the analysis, approximately 9.3 million pensioners will be paying income tax by 2028. 8.5 million pensioners currently pay income tax, but due to a freeze in the basic rate tax threshold, this number is set to increase.
Without this freeze, the threshold would have risen with prices to £15,220 in 2024 and to £15,990 in 2027/28. Research carried out by the Institute for Fiscal Studies (IFS) showed that more than 60% of over-65s pay income tax, up from 50% in 2010.
Commenting on the analysis, Sarah Olney MP said: ‘These stark figures reveal the stealth tax bombshell facing pensioners under this Conservative government.
‘Older people who have worked hard and contributed all their lives are now being clobbered with years of unfair tax hikes.
‘Jeremy Hunt’s pensioner-punishing Budget will not be forgotten come the next election.’
04/04/2024
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