Tax bombshell: In the East of England 400,000 more people aged 65+ are paying income tax under the Tories.
The new analysis from the Party shows there are record numbers of pensioners paying income tax, due to freezes to income tax thresholds and people needing to work later in life. Independent analysis shows Tory stealth income tax rises introduced by Sunak will hit taxpaying pensioners with £1,000 more on average, meaning the latest unfunded Tory pledge will only hand them back just under £1 for every £3 that’s been taken.
Tories taken £3 from pensioners and expect them to be thankful for £1 back – as record numbers of pensioners paying income tax.
Ther are a record numbers of people aged 65+ in the East of England are paying Income Tax under the Tories. There has been a 400,000 rise in the number of people aged 65+ in the East of England paying Income Tax under the Tories. And a 200,000 rise over the course of this parliament.
From breaking the triple lock, and single pensioners being worse off under the Tories, to huge increases in the amounts of people raiding their pension pots due to economic chaos, the economic failure of Rishi Sunak has left pensioners across the country worse off.
Labour will turn the page on Tory chaos with economic security and political stability. We will keep the Triple Lock on State Pensions and not raise Income Tax, National Insurance or VAT. Labour will give pensioners the dignity and security they deserve in retirement.
Under Labour the number of pensioners living in relative poverty in East Anglia dropped by 120,000 yet under the Tories over the last 14 years the number of pensioners living in relative poverty in our region has actually increased by 43,000.
Liz Kendall, Labour’s Shadow Pensions Secretary, said on a visit to Thurrock today:
“Rishi Sunak was recently asked why he hates pensioners. It’s not hard to see why when they have so profoundly failed pensioners – from increasing levels of pensioner poverty, to breaking their promise on the triple lock, Rishi Sunak’s and the Tories have worsened the quality of retirement.”
“Now the Tories pose a new threat to pensioners’ living standards, with reckless unfunded spending commitments and a £46 billion tax black hole that threatens the economy and the future of the State Pension. Combined with this, is the fact that under their watch a record amount of over 65’s are paying income tax.
Jess Asato, Labour’s candidate for Lowestoft, said,
“My message to pensioners in Lowestoft, Beccles and the villages is simple – look at your wallet, look at the quality of your healthcare and look at the lack of housing for your children and grandchildren and ask yourself, is this as good as it gets?”
“Retirement should be a time we all look forward to, but more pensioners than ever are renting into retirement, their children are returning home because they’re locked out of the housing market and soaring childcare costs mean pensioners are taking on more responsibilities they weren’t expecting.
Notes
A record 8.5 million 65+ paying income tax after 14 years of the Tories:
In 2009/10, 4.5 million people aged 65+ were paying Income Tax
By 2023/24, 8.5 million people aged 65+ were paying Income Tax a record hight
The Tories are only pledging to give back £3 for every £10 they’ve taken from pensioners in stealth tax rises
According to the OBR in March 2024 the income tax personal allowance in 2029-30 would be £16,640 if it had not have been frozen by Sunak and Hunt (table 3.6, uprated using CPI).
According to analysis by the Resolution Foundation under the Tories unfunded plans, the personal allowance for pensioners would rise to £14,430. This means pensioners will still be paying £460 more a year in income tax due to Tory tax rises. The personal allowance is currently forecast to be £13,080 in 2029-30.
Compared to keeping thresholds frozen, this means the Tories have handed back just under £1 in every £3 they’ve raised in stealth tax rises.
Pensioner poverty
40,000 more pensioners living in poverty in the East of England under the Tories.
The last Labour Government lifted 120,000 pensioners out of poverty.
Labour analysis, using StatXplore, of DWP, 'Households below average income: for financial years ending 1995 to 2023', 21 March 2024,
Income Tax
Record numbers of people aged 65+ in the East of England are paying Income Tax under the Tories.
There has been a 400,000 rise in the number of people aged 65+ in the East of England paying Income Tax under the Tories.
And a 200,000 rise over the course of this parliament.
2009/10 – 464,000
2019/20 – 651,000
2023/24 – 846,000
HMRC, 'Income Tax liabilities statistics: tax year 2020 to 2021 to tax year 2023 to 2024', 29 June 2023,
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