James Wild has welcomed the Conservatives’ new Triple Lock Plus, cutting taxes for pensioners across North West Norfolk and guaranteeing that the state pension is always below the tax free threshold - so people only receiving the state pension will not be taxed on it.
After committing to protect the Triple Lock earlier this year, the Conservatives will go further to boost pensioners’ incomes if they win the next election. In addition to uprating the State Pension in line with the highest of prices, earnings, or 2.5 per cent, the tax-free personal allowance for pensioners will also rise by the Triple Lock – guaranteeing that the State Pension is always below the tax-free threshold.
This means pensioners will never pay income tax on their State Pension, as the Conservatives continue to deliver on their clear plan to provide dignity and security in retirement.
As a result of the Triple Lock Plus, the average pensioner will see an increase in the State Pension of £428 next year alongside an income tax cut of £95. By the end of the Parliament, it will be a boost of £1,677 a year to their pension and further £275 a year tax cut.
The Triple Lock Plus builds on the Conservative Government’s strong track record of protecting people who worked hard all their lives after their retirement.
The Conservatives first introduced the Triple Lock in 2011, which has seen the State Pension increase by more than £3,700 since they entered office – which is £990 more than if it had been uprated by prices, and £1,000 more than if it had been uprated by earnings since 2010.
Meanwhile Labour have refused to back the Triple Lock Plus and would oversee the State Pension be dragged into income tax for the first time in history if they entered government.
James Wild said:
“The Conservatives will always look after people who worked hard all their lives to provide dignity and security to pensioners in retirement.“We have already increased that State Pension by £3,700 since 2010 and our new Triple Lock Plus will guarantee pensioners in North West Norfolk will never have to pay income tax on their State Pension.
“Only the Conservatives have a clear plan to protect pensioners. People still remember the derisory 75p a week increase introduced by a previous Labour government.”
ENDS
Notes to Editors
To provide pensioners with dignity and financial security, in the next Parliament the Conservatives will introduce the new Triple Lock Plus. This will comprise of two elements:
- Continuing to uprate the State Pension in line with the Triple Lock: following the £900 increase to State Pension this year next year it will rise by £428. On current forecasts, this will mean the State Pension increases by a further £428 in April next year to over £11,970; and increases by around £1,685 to £13,200 by the end of the Parliament (Office for Budget Responsibility, Long-term economic determinants, March 2024, link).
- Cutting tax for pensioners from next year by legislating to ensure that the tax-free personal allowance for pensioners also rises by the Triple Lock – guaranteeing that the State Pension is always below the tax-free threshold. From April 2025, the Conservatives will increase the personal allowance for pensioners by introducing a new age-related personal allowance, which also increases in line with the highest of prices, earnings or 2.5 per cent – the new Triple Lock Plus. This is a tax cut of around £100 for 8 million pensioners next year – rising to £275 a year by the end of the Parliament.
- The new Triple Lock Plus means that:
o Next year, the average pensioner will see:
An increase in the State Pension of £428
An income tax cut of £95
o By the end of the Parliament, the average pensioner will see:
An increase in the State Pension of £1,677 a year An income tax cut of £275 a year
- This policy is fully funded through our clear plan to tackle tax avoidance and evasion. This policy will cost £2.4 billion a year by 2029-30. It will be funded through our plan to raise an extra £6 billion a year by clamping down on tax avoidance and evasion. It will apply UK-wide.
