Dear constituent,
Thank you for contacting me about the income tax personal allowance for pensioners. I recognise that the freeze in the income tax personal allowance introduced by the last Government means a tax increase for pensioners already paying tax, as well as many pensioners paying tax out of their fixed income for the first time.
Unfortunately, given the substantial pressures faced by the public finances, including the £22 billion blackhole left by unfunded spending commitments made by the last Government, the new Government has to make tough choices to bring the public finances under control. It is only by taking these tough decisions and not making unfunded commitments on tax or spending that we can begin the process of change. By providing economic stability, we can begin to attract the investment and growth that our country desperately needs in order to fund our public services.
Nevertheless, I can assure you that I am committed to supporting our pensioners. Everyone in our society, no matter their work history or savings, deserves a comfortable and dignified retirement. I welcome the Government’s commitment to protecting the triple lock on pensions over the lifetime of this parliament.
The triple lock, which guarantees that the state pension increases each year in line with the highest of either inflation, average earnings or 2.5%, saw the new state pension rise by over £900 this year, and I know that a further rise will be announced at the Budget on 30 October. I am pleased that over 12 million pensioners are set to benefit from the triple lock over the course of this parliament, with the full yearly rate of the state pension forecast to increase by around £1700.
In addition, pension credit continues to provide a safety net for the poorest pensioners and those with additional needs, such as those with a severe disability, caring responsibility, responsibility for a child or certain housing costs. I welcome that the Government has launched a nationwide campaign to increase the take-up of pension credit by those eligible.
Thank you once again for contacting me about this important issue. I can assure you that I am committed to supporting pensioners and giving them the dignity and security they deserve in retirement.
Kind regards,
Barry Gardiner
MP for Brent West