Extra 1.2m pensioners forced to pay tax since the last election

Official figures suggest that more than 400,000 pensioners will be forced into paying income tax this year due to a freeze on thresholds. Analysis from consultancy LCP reveals that an extra 1.2m over-65s have been dragged above the personal tax-free allowance since the last general election. Data shows that more than 7.7m now pay tax on pensions and earnings. A large number of retirees will lose part of next year’s triple-lock state pension pay rise, meaning they face a real terms pay cut. Sir Steve Webb, a former pensions minister and now partner at  LCP, warned pensioners the taxman will be waiting to “take his chunk” of their 10% triple-lock rise. Steven Cameron of pensions group Aegon commented: “It is very harsh to be roping modest earners and the most vulnerable during the cost of living crisis into paying tax by freezing the personal allowance.”

The Sunday

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